How Is ‘Vega’ Risk in Options Analogous to Volatility Risk in a Liquidity Pool?

Vega measures an option's sensitivity to changes in the implied volatility of the underlying asset. Being short vega (selling options) means you profit if volatility decreases and lose if it increases.

This is analogous to a liquidity provider, who essentially profits from low volatility (less IL) and loses from high volatility (more IL), as high volatility increases the price divergence and the frequency/magnitude of arbitrage.