if the fee should be there for protection, I would be more in favor of a 7 days median price. last 3,5 days + future 3,5 days.
This makes manipulation super difficult and expensive. The 5% looks to me like a random number. Why not 3% or 1% or 0,3%?
1000$ = 50$ fee
10k = 500$ fee
100k = 5000$ fee
IMO this fee is not competitive with any other stable coin in crypto or regular fiat money.
No value here
Value = Benefit - cost.