As the price of Hive crashes, HBD being converted for Hive will continue to create more and more Hive for every dollar converted, pushing down the price further and creating more selling pressure.
However, I think this theory has proven that this is not exactly how it works in the real world. With the haircut in place, HBD breaks to the downside and everyone loses all confidence in it as a stable coin and continue to dump it even more.
It's also very clear that we need to turn the internal market's order book into an AMM yield farm, but that's another post.
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