Chili peppers lose their sting upon drying?

I was wondering if chili peppers (small hot red ones) lose their sting if they're laid out in the sun. I wanted to use them to discourage insects in my organic garden, drying and crushing them would make it easier to spread around where I need them, but I don't want to do that if it impedes their effectiveness. Another thought is to soak them in water or alcohol then spray the liquid but I don't think I could ever extract the active ingredient in them altogether that way, whereas with crushing nothing would be wasted provided the process of drying doesn't waste away the active ingredient.
Ian
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The 'hot' in chiles is capsaicin, which is only slightly soluable in water, but quite soluable in alcohol and oil. Believe me, dried chiles, if they lose *any* of their piquancy, don't lose much. Whether they will discourage insects is another question. There are many bugs (I have sad experience with moths) who happily live on dried chiles.
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Ian Gil wrote:

fact, if you don't roast, peel and freeze them, drying is how you preserve them. I've read where it discourages bugs but have not noticed anything one way or the other when I tried. I'm confident though that cats wouldn't like the stuff so maybe its a good deterrant to keep cats from crapping in your yard. There is certainly no downside I can think of if it doesn't work for cats or bugs. If you need some extra, most pizza places have containers or packets of the stuff too.
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