Hive has a debt limit protection, called haircut rule, which should prevent such a catastrophic scenario. On the other hand, there is a constant pressure to increase the debt limit and print more HBD. Also 20% interest on an algoritmic stablecoin isn't sustainable.
You are viewing a single comment's thread from:
The Haircut prevents the death spiral, but HIVE will still be printed. The best protection is to never implement an instant redemption from HBD to HIVE, which Luna had and what is totally buckers as an idea.
Posted Using LeoFinance Beta
Really it isn’t?
Posted Using LeoFinance Beta