Educational content, not investment advice. Crypto-asset values fluctuate.
„Everyone talks about “passive income” from liquidity pools. How does it actually work, and where is the cost nobody mentions?“
From AMM mechanics to a single-sided USDC position that behaves like a limit order that pays you. You see a real position on Orca first, and only then calculate impermanent loss — with numbers you wrote down yourself, not invented ones. It ends with the routine of range maintenance and fee handling.
Someone who already has a wallet and USDC and wants to understand the mechanics before putting money anywhere — rather than copying what they saw in somebody’s screenshot.
You will understand where LP fees come from and what they actually cost. You will know how to choose a price range deliberately, recognise when your position has fallen out of it, and what to do with accumulated fees. Impermanent loss becomes a calculation you run before entering, not a surprise afterwards.
Not for you if you want a set-and-forget product — an unattended LP position stops behaving the way you planned. Not for you if it bothers you that your asset mix changes on its own as price moves. Not for you if you do not yet have a wallet and USDC. Uniswap and Meteora are deliberately left aside here: one protocol, one route.
Order matters — each lesson is placed so it builds on the one before it.