Hey @smooth, been thinking about it, and I think I found an extremely simple solution.

Only set HIGH = 1.05

Whenever HBD trades above $1.05, print, profit, and reinvest in the DAO or burn.

We don't need LOW because everyone takes advantage of the arbitrage when it arises. The bigger hive gets the more efficient the market will be. It just provides extra money to people who deeply understand HIVE/HBD, so why not.

If we get in the particular case where HBD's fair value is $0.5 because of the debt cap, then who cares if it trades at $0.6, it's still below $1. In that scenario it's not acting as a dollar stable coin anyway, and this fundamental problem cannot be solved by the proposal, no matter how we try to cut it.