Whilst the inflated price of SBD doesn't really bother me, it doesn't make much sense to me for the funds in the DAO to be as high as they are and I like the idea of using them to buy STEEM and (hopefully) increase its price.

When I was looking at the proposals on Hive, I saw that they do this to peg HBD at $1 and have provided the pseudo code for what they've done:

hive = get_hive_api()
exchange = get_external_exchange_api();
stabilizer_account = “hbdstabilizer”
dao_account = “hive.fund”

while true
  a = hive.get_account(stabilizer_account)
  hive_bal = a.balance
  hive_chunk = min(hive_bal,max(100,hivebal0.1))
  hbd_bal = a.hbd_balance
  print_rate = hive.get_dynamic_global_properties().hbd_print_rate
  order_book = hive.get_order_book(1)
  best_offer = order_book.asks[0]
  best_bid = order_book.bids[0]
  reward_hbd = a.reward_hbd_balance
  reward_hive = a.reward_hive_balance
  reward_vests = a.reward_vesting_balance
  market_price = hive_bal > 0.1 or hdb_bal > 0.1 ? exchange.get_price(“HIVE”) : 0
  if random_integer(25) > 0
    // do nothing
  else if (best_offer-best_bid)/(best_offer+best_bid) > 0.01)
    // wide market spread, wait for better
  else if hbd_bal >= 100
    if market_price < 1.005best_offer.real_price
      if print_rate == 10000 and market_price < 1.00best_offer.real_price
        hive.convert_hbd(stabilizer_account,hbd_bal)
      else
        hive.transfer(stabilizer_account,dao_account,hbd_bal,””)
    else
      hive.create_order(stabilizer_account,hbd_bal+" HBD",floor(hbd_bal1000best_offer.base/best_offer.quote)/1000+" HIVE",false,3)
  else if hive_chunk >= 100
    if print_rate < 10000 or market_price > best_bid.real_price
      if market_price > 1.06best_bid.real_price
        hive.convert_hive_collaterized(stabilizer_account,hive_chunk)
      else
        hive.transfer(stabilizer_account,dao_account,hive_chunk,””)
    else
      hive.create_order(stabilizer_account,hive_chunk+" HIVE",floor(hive_chunk1000best_bid.base/best_bid.quote)/1000+" HBD",false,3)
  else if reward_hbd > 0.1 or reward_hive > 0.1 or reward_vests > 200
hive.claim_reward_balance(stabilizer_account,reward_hive,reward_hbd,reward_vests)
  else if (a.vesting_withdraw_rate == 0 and a.vesting_shares > 200
    hive.withdraw_vesting(stabilizer_account,a.vesting_shares)
  sleep("3 seconds")


@smooth's account has been dedicated to this for some time.