100% agree with that. Although I would chose a percentage of 90%, since crypto is very volatile and hive collapsed 99% in the last bear market.

One problem is that the higher the market-fall-protection percentage, the lower the volume of HBD in circulation. With a 10% debt-to-ownership restriction and 50% market-fall-protection HBD is already limited to 5% of the Hive market value. At 90% market-fall-protection we're looking at 1% of the Hive market value. Not much to go around!

The only other possibility I see is to cash out the profits from the hbdstabilizer operations to a stablecoin outside of hive, for example DAI.

I was going to suggest something similar to this. Essentially a foreign exchange reserves option. Solves the problem of having to use Hive to support HBD and the effect that has on the Hive price after a market fall. A basket of stablecoins could be used to prevent the counterparty/failure risk of individual chains.

It would be easy to set up in a non-trustless fashion but more complex to make it trustless. Although this could be solved with the arrival of layer 2 smart contracts I would think.

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