This is awesome, a risk-free rate of 3% on a stable coin is solid stuff.
What I'd like to know is how the interest rate changes when the peg breaks down or up? Will, there be an incentive to up interest if it breaks down, and reduce when it breaks up?
HBD Stabilizer will put pressure on keeping HBD at $1. This is due to the fact it has different actions based on the price.
Interest will encourage more HBD holding, and the HBD Stabilizer will attempt to counteract any shift.
That being said, outside conditions can put a lot of pressure up or down. For example, SBD spiked to nearly $20 because the Korean exchange Upbit listed STEEM & SBD and many non-steem users bought SBD raising the price, many saw this and fomo'd and jumped on board, this started to snowball until it ultimately hit just short of $20. At the time there was no SBD Potato or HBD Stabilizer and the HBD supply was only around 1M (I believe at the time). HBD supply is a lot higher now making this more unlikely, but considerably lower than the peak on Steem.
Posted Using LeoFinance Beta
I feel that the main driver for traders to treat HBD (or SBD for that matter) like any other coin and not as a stable coin is that exchanges list it in that way.
When you go to to trade HBD on exchanges it is priced in BTC and not the other way around. Take DAI for example, if you see it on Binance it does not display the price of it in BTC but rather the opposite. So traders see that and say "Oh this is a stablecoin worth one USD" and act accordingly.