I guess the fee is a more direct money grab from speculator/pumpers than merely using it to buy HIVE would be. Which ends up benefiting Hive (stakeholders) more, I can't really say.
It takes 3.5 days to complete but the HBD is delivered immediately. To account for price fluctuation there is a overcollateralization.
Very good to know :).
To the speculator/pumpers point. If it is immediately, it is cool, but 5% way too high. How should HBD compete with other stables?
if I sell 1$ in Hive, I get 1USDT for it. With Haircut I don't see much abuse potential, it's more like people would less likely sell for Tether if they can use our onchain HBD.
More liquidity in Hive/HBD. The market wants to avoid fees. I think this makes a good idea to something that manipulates itself.