because guess what we were in the bear market when HBD APR was changed in the first place.

Incorrect... I think... now I need to look it up.
It had to have been implemented in 2021 pretty sure.
The entire point of 20% was competing with stables like UST.
@edicted/20-interest-rate-on-hbd
Wrote that post in April 2022 right before shit hit the fan.
Hive was still trading at around $1.
So the timing is... interesting.

In any case @dalz has all this information organized into nice charts and things.

It very clearly shows that a high demand for HBD can easily make Hive go completely deflationary and results in net-negative inflation as Hive is destroyed to mint more HBD. The question then becomes okay if we keep printing 20% yields how much demand does that give HBD vs how much do those yields get dumped out to Hive. It's all guesswork, but a lot of the people saying we should reduce yields don't even consider this math or even attempt to calculate or guess at it because "printing money is bad".

@dalz/exploring-the-sustainability-of-the-hbd-interest-rate-in-the-hive-ecosystem-or-realized-and-projected-inflation-from-hbd

So yes, easily easily easily HBD can sustain 20% yields if the demand outstrips the supply. 20% yield gives HBD more demand. There are many other reasons to hold HBD as well, with even more projects being built that will certainly use it. The cost of 20% with the current 7.5% debt ratio results in the Hive network only having to pay 1.5% of the Hive market cap to sustain 20% yields on HBD. Is HBD worth 1.5% a year to the Hive network. I would say this is obviously the case. Things could change if the debt ratio goes higher, but for now it's fine, and there is a hardcap at 30% haircut.