Lessons from Greed in Liquidity Pools

Last year during the bull run, I jumped into the $SOL-USDC LP because I saw a sky-high APR. I didn't think much about it, other than it looked appealing. But in the end, that liquidity ended up draining all my money as SOL plummeted and Impermanent Loss kept eating away. At the time, I thought averaging down would eventually bring the price back, but in reality, I should have cut my losses and exited that LP much earlier instead of holding onto false hope.

The lesson learned is that a high APR doesn't always mean it's good, and you need to thoroughly understand the risks of Impermanent Loss before putting money into DeFi protocols, especially in highly volatile pairs. If you're not confident, you shouldn't invest in the first place. Putting everything into a single asset without diversifying risk was another expensive mistake.