The best case is having a stable value coin at the base layer. It is a design choice that will improve survivability, but it not required. As long as the three other requirements exist it will work even if the stable value coin is at a higher layer. How smoothly would depend on the implementation & design.
These could be implemented, in theory, similar to break away community tokens.
That’s true. But I’d feel a lot more secure it if were on LI. Security is paramount on this issue.
Agreed having a stable coin coexist on layer 1 makes it more secure.
Can we start calling HBD a value coin instead of an algo stable coin? It conveys something more important than its technical natural.