What I see as a problem with low hive prices is that every HBD printed through interests adds 15 hive to the circulation without bringing any use case other than adding a return for people holding hbd in savings. At the same time, this adds pressure towards the haircut that once it's reached the parity will drop. this will be much worse than lower APR I believe.
If the hard haircut kicks in, what are the potential negative impacts on 2nd tier tokens such as LEN, CTPSB etc, and can anything be done to mitigate those impacts?
!PIMP
!BBH
!ALIVE
What should be understood is that the hard haircut is in place to protect hive. In the short term it probably adds uncertainity but in the long term it would reduce inflation through HBD so I don't think it would have a direct negative influence long term on 2nd tier tokens.