@stewbits22 11 June 2022 more from that month

AMM market makers on Coinflex have locked up millions of dollars worth of BCH and Eth but don't seem to be making much money looking at the APR over 7 days. AMM is very dangerous if you are not aware of the risks. For example if you are a BCH supporter it feels natural to take a long market making strategy supporting your coin. While this is noble it has been financially disastrous, leaving millions of dollars worth of BCH locked in unprofitable positions, with interest payments if you took leverage and the threat of liquidation of your precious BCH as you have to cover the cost of your average entry price in your AMM compared to current market price. That is a big ouch. You can see from the chart below there was a sudden massive drop in liquidity as no doubt a lot of market makers were wiped out in one hit. It doesn't have to be this way you just have to cover your risk and exit as soon as you are out of range. Do not wait and hope that price will recover. End your position after 1 day out of range and take a small loss, or figure out a better strategy because professionals are making millions every year doing this. You just have to figure out how they manage risk.