I'm having a hard time understanding the debt conversion incentive.
If there is too much HBD in relation to Hive's market cap, then the conversion won't be done 1 to 1; but if HBD depegs with a value lower than $1, then people will look to convert it to hive which lowers the supply of HBD until there isn't any left.
So, the good thing is that there will never be enough HBD to be bought and converted to tank the price of hive.
On the other hand, you will have to always be looking out when storing HBD since if the debt goes over 10% you are not getting a 100% conversion rate to Hive.

Also, thank you @dalz for the in depth explanation. This really gives peace of mind around HBD. Some times it can seem challenging learning about an entire blockchain ecosystem.