Yeah, you get to earn, but the profits are usually sweet when you are in early and the APY is still high. As soon as more people join in, the percentage goes down. The disadvantage is mostly about impermanent damage and maybe if there is a vulnerability in the smart contract or rug pulling. You know the latter also sometimes happens, so you have to be careful.
Same thing with MEV bots, they were so profitable before until it became public knowledge that they were profitable and there was a gold rush. Currently, if you are an average user who doesn't know how to create a bot, it's not worth it. If someone is selling you the bot, why are they selling you the bot instead of earning from it?
Thanks for your suggestion. I've always wanted to try arbitrage trading with an MEV bot, but I'm afraid high gas fees "kills it". It could work on other EVM chains with lower fees, though. The easiest route would be to "stake" your tokens in a liquidity pool. We'd have to consider the risk of "impermanent loss" before going all in with our hard-earned money.
I'm yet to see whenever it's more profitable to use an MEV bot, or a liquidity pool. Staking ETH at a staking pool is another option. As long as market prices don't take a "dip", there should be nothing to worry about.