I am not the best at how this works, but from my understanding increasing the APR on HBD would raise the price of Hive because as she mentioned, people would have to buy Hive and then use the conversion mechanism since there isn't enough HBD in circulation to meet a high demand, so buy pressure on Hive and I think converting it burns it. Plus, HBD having more in circulation helps it be more stable and ergo more businesses might be attracted to Hive because they can take payments in a stable coin.
But please correct me if I've got any of that wrong!
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Between the both of you, I feel like 50 times smarter!
Thanks so much for your input.