It can go forever if Hive’s price keeps going up forever. Sustainability question mainly relies on Hive’s value. That’s why we call HBD Hive Backed Dollars.
I would say interest rate should be adjusted based on haircut rule. If haircut rule is triggered, pause interests or lower APR. If haircut rule is not triggered continue with 20% APR.
He's not wrong but might miss the point that APR payments breaking beyond the Haircut will still be paid but in liquid Hive.
@daveks Therefore in can be "payed" forever and I'd love to see the dynamics that unfold hitting a 30% haircut. Could be bullish as hell, and could be an immediate downspiral of the Hive value vs Sats.