Interest rates would naturally settle down at 4-6% on 12 months, with high risk taking for high APR yeilds happening on the LII collateralised loan market, reducing risk on the LI as much as possible.

Hive and HBD have more than enough safeguards to prevent the issues that Edicted thinks will happen already in place without needing to add any more. The main risk reduction is removing high yield seeking HBD holders to LII where they can’t hurt the LI holders who should be the most conservative, lowest APR seekers of all