I didn't really look into it too much but this post by dalz kind of went into the details. I think at least the math checks out and it makes sense in my own head. From a view, I think it's trying to look at the view of turning HBD into Hive and how it will affect Hive.
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Thanks I read that one and the technical one, I linked in the comments, what I don't get is where the value is coming from. As I understand it, you have a market cap with 2 assets and a ratio that needs to be maintained within the given market cap
So people are switching the same value between 2 "assets" but no value is being created, it just seems like an accounting trick rather than creating an actual bridge between someone wanting to borrow or lend an asset