When shit gets windy, HBD sways in the wind while other stablecoins start to shatter at their base.

This is more or less the analogy I made about it last year.

Aside from the confidence aspect of allowing minor depeggings to be normal for HBD, there is also the fact that allowing minor depeggings also means better use of capital by our stabilization mechanisms. The HBDstabilizer using the equivalent of $1000 to stablize the peg goes a little further when the internal market price is at $0.95 (buying 1052 HBD) rather than $0.99 (buying 1010 HBD). The network effectively profits from fixing a depegging event, but moreso if it doesn't try to maintain a tight peg. That said, there is still a trade off because allowing a depeg intentionally would likely still undermine confidence.