Thats the point. the market will set the rate of the new bonds via reverse auction. whom ever is willing to accept the lowest rate for the highest amount paid in gets the bond.

same thing if a user sells it on the market. the user and the bond purchaser are the market. the chain jsut sells the fresh bonds.

The dollar bonds are seen as pristine collateral, as its bonds always clear into equivalent USD. this also means that when you use it as collateral, you get the lowest interest rates.

almost every other asset is seen as second to the usd since 2008. and the interest rates are higher as a result, meaning its harder to create a loan market if you collateral is not seen as pristine.

imo HBD is pristine too as it always clears for 1 usd of crypto as long as its above the hair cut.

I pose that an expansion in HBD market cap size will LOWER the debt limit if the hive used to create the large amounts of HBD is sourced from the open market at market rate.

The reason the USD is dominant is because of that huge navy parked outside San Diego. no one can touch it, so the dollar remains pristine.

HBD also is pristine for this reason too.

Can choose to peg to any other currency or basket of commodities when when we dont want to use dollar anymore, should that become the case.

The need for the pristine collateral (HBD Bond) creates the liquidity, amongst other things

Hive does not need the loan, but it can do it, and it can do it better than any other system. once you have the bond system you have the ability to replace the euro dollar system with something legitimate and transparent and good. it will create trillions in value for hive and humanity. why not do it then?

Its certainly not bad for hive.

The loan is used constantly for collateral. so i dont agree that hive will do nothing with the loan. its expands liquidity and utility and money velocity to levels basically as in-comprehensible as the traditional debt markets are huge.

Moving the high more degenerate APR to a collateralised loan market definitely lowers the risk on the base layer where you can have a market driven reverse auction APR for hive bonds instead of it being set by us fallible witnesses

I dont see it as a time delay. i see it as a "im here no matter what until the term of the bond finishes" this shows confidence and is valuable beyond comprehension again

Let the market judge the risk. not you, or i. the market knows best what is risky. ppl will set the risk level with their own hard earned capital. on a transparent block chain, you cant get a better pricing model for a collateral loans market. we can still put other restrictions and economic safeguards into the code to protect the system like we currently have.

Its not derivatives on top of derivatives. its a way to remove risk from base layer by letting ppl take risk on LII and earn passively there proportionately to the amount of risk they are taking. this allows you to isolate the LI from risk via APR

I guess the real question is that id like to see you answer: if there is someone else bidding against you, how many months lock in would you undercut them if they bid 12 months for 8% APR? would you go lower than this or would you let them take your HBD bond. (Id more than happily take 8% APR and have that bond off your hands if you want it to pay you 20% for a 3 day lock and wont budge from that - ill take you bonds all day at that rate and as you can now see - im a much less risky person for the chain to loan to than you are).

The bonding system sinply needs to adjust the lock in from 3 days to 365 days. its quite a simple change. so it is worth arguing, and if you recall, about 15 months ago, block trades came on call to say this was possible and will be included in an upcoming hard fork.

The collateral market can be put on LII without centralising anything.

CAn you see: I am less risky to loan to on base layer because i will accept 8% for a full 365 day lock. you are much higher risk to loan to as you wont accept anything but 20% for a 3 day lock. of course the chain will loan to me over you every single day with that deal.

I think this is the point you really should be addressing in all of this ^^