The MakerDAO template is one that Hive can expand on and even dominate this market. The huge advantage of HBD vs DAI is that HBD is more than comfortable breaking the peg and getting haircut to a lesser value than $1. This allows us to do many things that MakerDAO can never do: like allow bad debt to sit on the platform until the market recovers.

Hive can also create credit score NFTs attached to every account that incentivize paying back bad debt even though it is not otherwise profitable to do so.

My idea has always been pretty simple: get rid of the 15% inflation allocated to stakeholders and apply to the savings accounts. A flood of capital will enter these accounts because they now provide passive income. Then, allow the stake locked in these accounts to double as collateral for HBD loans. Anyone will be able to create or destroy HBD as long as they have enough collateral in the account.

The other big advantage of HBD over DAI is that the system that liquidates bad debt (Ethereum) on DAI uses the same variable to create debt as it does to liquidate it (150% collateral). This is a huge mistake.

With HBD we can make it so users are required to collateralize by a much higher percent than the liquidation percent, creating a huge gap that will make the system far far more stable. For example, we might require 1000% collateral, but the liquidation percent might only be 110%. And because the savings account is already doubling as a source of passive income... this is really just icing on the cake and users will use the system no matter what the collateral requirement is.

@edicted/more-on-stabilizing-hbd-sbd