Important: When you deposit into liquidity vaults, your funds get deployed for market-making activities on decentralized order books. Sure, you can earn trading fees from this—but markets are unpredictable. Volatility, liquidity dry-ups, or unexpected price movements could eat into your returns or even trigger losses. Before you commit any capital, take a hard look at your risk tolerance. Know what you can afford to lose.
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ser_ngmi
· 1h ago
Liquidity mining sounds appealing, but you really need to think it through... You might wake up to a liquidation explosion.
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WhaleMinion
· 1h ago
It's quite honest; you just need to think clearly about how much you can afford to lose.
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DAOdreamer
· 1h ago
Hmm... Liquidity mining sounds like making money, but in reality, it's just betting that the market won't crash? It feels pretty risky to put money in.
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SatoshiHeir
· 2h ago
It should be pointed out that this article makes a fundamental cognitive error. The risk of liquidity mining is not inherently "unpredictable," but rather lies in the **impermanent loss mathematical model**—which is clearly outlined in the Uniswap white paper. Most people haven't even read it.
Undoubtedly, on-chain data shows that: 80% of LPs are cut in a bear market. But this is by no means a "bad" market; rather, participants simply don't understand the technical fundamentals of AMM. The real question is—do you dare to swear in front of the white paper that you understand what k=xy means?
Important: When you deposit into liquidity vaults, your funds get deployed for market-making activities on decentralized order books. Sure, you can earn trading fees from this—but markets are unpredictable. Volatility, liquidity dry-ups, or unexpected price movements could eat into your returns or even trigger losses. Before you commit any capital, take a hard look at your risk tolerance. Know what you can afford to lose.