Let's model the idea of HyperBank. It surely will increase visibility, at least at Poloniex. Every time an investor will try to allocate, for example, 5 BTC, a correlated buy order will drive the price and volume up. But after 10 days this investor will wait for his interest given back, e.g. 2%, or 5.1 BTC. At this moment the price will fall back to the mean, and an attempt to sell 5.1 BTC worth of HYP can fill all orders down the floor and even more. It will show up like pump & dump. It's very attractive for traders, but not so appreciated by investors. We need to find an equilibrium to satisfy both.
What I see at this moment is that even an order of 0.5 BTC causes a major price move (on Allcoin) although Polo has a bit more traffic but won't be able to sustain multiple-BTC orders without large price swings either.
What I feel is that such a bank should be similar to a savings account - you can deposit and start earning but not pull out unlimited at any time, so the bank has time to prepare for your withdrawal and does not need to emergency-sell positions.
Alternative would be that the bank is not transferring every incoming BTC to HYP and back, but there is a buffer, an investor group if you will
that has holds the HYP and gets funded from the BTC in the bank but they buffer the BTC, so the amount of HYP stays the same even though the amount of BTC fluctuates.
It would even be viable to keep half the BTC untouched as buffer while the other half gets converted to HYP as the market can absorb the changes, so that immediately withdrawal of BTC is possible up to half the total balance at any point, any more and the HYP first needs to get whittled down without crashing the market. Likewise with investment in BTC: the amount of HYP can slowly grow to half the amount of the extra BTC deposited. That means of the 18% staking rewards, virtually half is used, the other half is sitting unused in BTC buffer. But it could be an attractive bank anyway.
I am occasionally borrowing some BTC to an investor that makes 10% but can't buy BTC fast enough, so he gives me 5% to borrow my BTC for up to a week. That is a very attractive deal and very similar to this banking idea.
That sounds great, thank you!
Peace...