When hard limit is reached, the internal price of HIVE becomes artificially high, meaning that on chain conversion and other calculations will cause code to give out less HIVE than one would expect
Yup a huge risk for panic and i totally against increase the debt limit. Im sure we will see sooner or later a panic run for the 10% Stablecoin interest farmers.
If the plan is to increase it anyway, i would watch first what happens with 10%. Im sure we will see a 0,5$-0,6$ price per HBD. Special because HBD conversing makes the movements more extreme in both directions.
True, but with for example 50% ( to make it a bit extreme) we will hit the panic at some time too. Only later.
With the difference, hive could pump to 7$ in that timeframe to print a shit ton of HBD.
With the 10%, it's like a government that can't pay its bills. The haircut would destroy at this point way more "money".
And it could also if the conversion is unlucky destroy the tokenomics from Hive.
7$ Hive = 2,8B MC
30% print = 900M possible HBD (also 10% APR is more then 90M a year)
Price drops to 3$ and panic hits + mass conversions. Price drops more and more conversions.
Sure Haircut can be in place, but it would not be stable at all.
I don't know. I like collateral stables more with lockups. They have problems too but don't affect inflation and they are not debt.
Yeah, I don't know, I'm in favor to hold it as low as possible :) IMO it makes it riskier to hold larger amounts powered up in extreme market movements.
The N idea is good. Let's see what happens.