A few thoughts from my own LP experiments. Not a universal playbook or some ultimate truth. Just observations from years of studying markets, testing strategies, and learning along the way. I'm still learning, too. Feel free to disagree. I think of liquidity providing as a business, not a shortcut to a flashy APR. My long-term BTC and ETH holdings have one job: stay invested. My LP capital has another: earn cash flow by making markets. I don’t need one strategy to beat the other. They serve different purposes. Take an ETH/USDC pool. When ETH falls, the position gradually holds more ETH and less USDC. When it rises, the opposite happens. You’re effectively buying inventory on the way down and selling it on the way up, collecting fees while traders use your liquidity. That sounds a lot like running a small exchange desk. But the inventory is yours, and so is the risk. You can even start mostly in stablecoins to accumulate ETH on dips, or start in ETH to gradually sell into a rally. It’s inventory management. And here's another way I think about it: owning rental property. Imagine an apartment you bought to generate rental income. Its market value might rise or fall, sometimes quite dramatically. But tenants can still be paying rent every month. I don't wake up every morning checking what someone would pay for my apartment today. I'm more interested in the rental income, expenses, and whether the property remains a good long-term business. That's how I approach LP capital. My position might temporarily show negative P&L while trading fees continue accumulating. The fees are positive revenue, even if the underlying assets have fallen in value. Sometimes the position's value stays around my original investment, while the cash flow keeps coming in. Sometimes the position itself appreciates, too. Of course, this doesn't mean the business is profitable overall. Revenue and total return are two different things. And fees only accumulate while there's trading activity through my active liquidity. But I don't want to judge a cash-flow business solely by what someone would pay for it on a random Tuesday. Here’s what experience has taught me: The range is a business decision. A tight range can produce spectacular fee APRs while volume is strong. It can also go out of range quickly, stop earning fees, and demand constant attention. I’ve been perfectly comfortable with 15-20+% annualized in wider ranges, with fewer adjustments. On larger capital, peace of mind and lower turnover matter. 🧵 1/2