An AMM creates the liquidity instantly by exponentially accelerating demand for the HBD token, pushing the price past $1.05 and making Hive >> HBD conversions worth it. In fact, we have already seen what happens here: demand gets so high that price of HBD goes up to around $1.25 and whales and liquidity providers like Blocktrades bots will aggressively convert Hive into HBD to cash in on that free money.

Then all that HBD that got created goes into the AMM, creating permanent liquidity.

This is actually like really frustrating at this point because whales and other prominent individuals on Hive keep talking about how 12% interest rates on the savings accounts are awesome... and how we should implement bonding. But adding yield to savings accounts and bonds time-locks HBD and makes it even more illiquid. I truly do not understand the logic here.