Many are holding so they can let that compound. It also increases the voting power so that rewards can be directed to the pool interested to them. Plus, a lot of CRV is being converted to veCRV and locked to boost these returns. You can boost up to 2.5x, so some pools are paying 220% interest on stablecoins and 120% interest on BTC pool. It also allows the community to vote and determine where rewards will be spent, or other additions.deger wrote: ↑ I find it interesting how the interest earned from swaps and loans is relatively low compared to staking for governance tokens and selling it. They governance tokens have value mostly because there is another person willing to speculate on future value of the token. Bar that some token will pay out some earnings from protocol. Sure it allows one to participate in and vote on the feature direction of the company, but I don't think people are paying for this privilege but rather for speculation. As a governance token farmer you can choose to hold and speculate or cash out.
The other value I see is if the protocol's cash flow grows and more earnings are paid out to the gov token holders which should increase the token value. But given the high APY yielded from selling some gov tokens like CRV using yearn (90%apy), I can see why one could cash out now rather then hold.
yETH vault is coming up, which will be a great way to earn interest on ETH so it can auto generate the money to pay for gas fees. And yYFI is being changed now that Aave has listed YFI, allowing one to lend and borrow to earn interest on the governance token (which should increase interest and price further, since there’s only a limited number of this token and it won’t be minted anymore, as per decision from last vote from the community).