Part 2/7:
Many DeFi investors today find themselves at a loss, unable to grasp the mechanisms of liquidity pools. They express frustration over divergence losses and market declines. Often, they invest in liquidity pools involving assets like Bitcoin and Ethereum but wind up out of range due to unexpected market fluctuations. For instance, those holding Solana may find themselves stuck with depreciating assets simply because they weren’t equipped with a robust strategy to manage periods of volatility.
A significant reason for this struggle is that many investors apply a “one-size-fits-all” strategy across different market conditions. This is particularly evident in the approach taken during a bear market that remains unchanged during fluctuating markets, leading to critical missteps.