I think it's fine to call the XRPL AMM passive income; the whole point is to turn over XRP to the machine for trading. If REITs & rentals are considered passive, surely a LP is, too? The important point is that participants are not guaranteed profit.
So if you want to call it "passive investing" instead of income, sure. But it seems in line with common usage in the financial world to refer to it as at least potential passive income ¯\_(ツ)_/¯
@WKahneman You may also get back less xrp then you put up so that sounds great as well 🤣
@WKahneman @khughbreslin That last sentence doesn’t really make it passive
@WKahneman #NotGuaranteed profit is they key here. In the case of an extreme run to one side of the pool or the other you could end up holding a lot of a token with no demand.
@WKahneman Risk depends on the pair on LP. I would not provide LP on XRP/USDC right now. Risk of impermanent loss would be realistic if XRP shoots up 3-6X in a month?