maybe VCs sit a bit higher up and have a big picture vantage point

but i can assure you, the mercenary capital being deployed now to farm yield in DeFi are from hardy cockroaches that crawl out of the woodworks whenever they smell something to exploit

i know, cos im one of them

taking me as an example, im definitely moving my capital out of compound once im finished with the COMP fuck fest

but sure, quite a bit of it will stick since all this exposure did indeed draw in organic users who are now aware of what they can use their capital for

good arbitrageurs are ones that dgaf about speculating on future value- they just book the difference as profit

joining the COMP farm now without planning to sell it almost immediately makes you a speculator, just that you acquire it cheap through "mining" rather than purchasing

price per $COMP from liquidity mining is rising while net APR is dropping as (1) more people join the farm and (2) COMP prices get dumped by "good" arbitrageurs

me thinks $COMP price will continue dropping quickly til it is ~$30, during which many farmers exit as the APR becomes less attractive, increasing the profits for those that remain

bleeding will still occur, but at a slower pace, probably to sub $20