RE: Can what happened to UST happen to HBD? - More HBD FAQs

Where does the 20% HBD interest come from?

It is additional inflation on top of the existing one. This said it is less than 0.5% on a yearly basis. And it cannot increase by a lot because it needs more HBD, that pushes the price of HIVE and in reality decreases the inflation, like what happened in 2021 when HIVE ended deflationary with -2%.

Is HBD’s 20% interest sustainable?

I wrote a newer post on it:
https://peakd.com/hive-167922/@dalz/what-is-the-inflation-from-the-hbd-interest-realized-and-projected-or-august-2022

Short answer YES! But this is only my opinion :)
The haircut and the debt are what regulates HBD, the APR is just a bonus.

What HIVE price will the haircut likely kick in?

At the moment it is 7 cents but it is dynamic depending on the amount of HBD in circulation. If HBD in circulation drops trough conversions or buying from the stabilizer so will this price. For example at the beginning of 2022 we had 14M HBD and a floor price of around 17 cents, and now we are at 9.7M HBD and a floor price at 7 cents.

Live data here:
https://hive.ausbit.dev/hbd