Fiat is debt indeed, all owned back to the FED with interest, and that interest doesn't exist... so the FED has to print more money just so you can pay back your interest, and there is interest on that interest... bing bang boom debt-slavery.
There are very little disadvantages to this system. It's possible that too many people use it to margin trade and load themselves up with debt... but that debt is collateralized over 100% so I don't see the problem. In fact, it's a more stable system than what we have already... it is robust and very resilient to attack.
I don't think it would take a whole lot of development:
- create CDP smart contract using savings accounts
- minting HBD with CDP
- destroying HDB to unlock CDP
- auction system to liquidate bad debt
- voting system to tweek collateral/liquidation numbers (wrote this just now, will be my next post)
I think that's about it... thanks for asking and having me lay it out like that... as this is good organization.
I would like to see a bunch of economically and tech inclined people to pick it apart, but you may have stumbled on to the special sauce to making Hive a top 10 coin one day with this idea of improving upon the MakerDao model which seems pretty decent itself. It's certainly helped me to start dreaming bigger.