Call it a negative feedback if you like, but it's also positive feedback when the price goes up. Again, that's the nature of leverage. Everything you wrote about the downside applies analogously to the upside.

At the same time, the demand for a stable asset with yield is very large and very powerful, has lasted since the dawn of time, and will likely continue forever. A very large portion of the capital in the world is invested in this manner. Being able to accommodate both speculators and yield farmers with their own targeted products, each of which benefits from the other, is a net positive for everyone.

I do think it is clear that literally nothing is perfectly stable. There has never been a currency with perfectly stable purchasing power and there never will be. But relative stability is very useful, very valuable, and a relatively stable asset with yield is something that has always had large demand and likely always will have demand.

We can accommodate both yield farmers and speculators, and doing so has a synergy.