1% can be a lot in $ for a transaction. And maybe pay another 1% to get back other stables again.
Not really competitive IMO.
And before you answer me: "Hey you can earn big % on this", it's bad for every other use case like using it as a stablecoin for purchases or transactions.
Most people use stablecoins for trading and not yield farming.
The overvaluation won't be permanent. It'll persist as long as it takes to create "enough" HBD to satisfy demand and then it will settle back to $1, which is ideal for other use cases. This is a transitional effect. At larger scale where traders will work on smaller margins, we can get by with less overvalation, maybe 1.0001 or such.
thats true but i would wish for HBD a "on demand" idea. Something like a loan or whatever.
So if needed we can print 10 Million without directly influencing inflation.
Or a sister coin like USD-Hive that is a DAI copy. Something like that. So HBD can be HBD and we have something "different" too.
I mean many horses are not that bad :P