I was asking themarkymark the following on his post. If I may ask you as well since I also have a follow up question.

These HIVE transactions are immediately converted to HBD by the DHF.

For simplicity purposes let’s say market price for hive is $1, and hbd $2.

1. dhf issues 1000 hhd to stabilizer.
2. stabilizer buys 2000 hive with it and sends it back to dhf.
3. dhf converts that to 2000 hbd by destroying 2000 hive and creating new 2000 hbd
4. dhf made profit of 1000 hdb

Is this how it works?

If this is how it works, why not make this part of the blockchain code when dhf or designated internal account does what hbdstabilizer is doing but with larger amounts based on market conditions. Sort of an internal AI. It seems like this process works and it is only matter of amounts used for it to be successful in establishing upwards peg for HBD.