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RE: Bitshares Black Swan and the troubles of stablecoins
SBD which was collateralised (in the optimal case) at 200% before but now is at laughable 110%
If SBD drops to <100% collateralization, will it get force-liquidated as happened with bitUSD, or was that measure not built into the Steem protocol?
In the case of SBD there is no forced liquidation. The only thing that is changed is that manual conversions will not give 1$ of steem anymore, but less. The conversion amount is computed such that when all sbd would be computed at once the converted steem is no more than 10% of the steem in circulation.
The markets are quite rational and the price you see on coinmarketcap is usually close to the amount guaranteed by conversions.
I have made a lot of posts about this:
overview and pre HF20 prediction
simple computations
full computation
last update