At the moment, with the current supply of HBD, it's totally fine with 20% APR, feasible.
But my question is, let's say 5/6 years down the line, if the HBD supply becomes 100 million or more, don't you think 20% APR will be too much inflationary, considering the fact that the debt limit is now capped at 30%?
Anyway, as always quite informative and insightful stats. Thank you for that.
HBD can be a max of 30% supply of hive market cap. For hypotetucal scenario lets say all the 30% is in savings yielding 20%. That is a max of additional 6% inflation on top of the exsiting one.
The haircut rule is what protects hive and hbd, not low apr for hbd. If we approach the debt limit, I expect the amount of hbd in the savings to drop no matter what is the apr.