Studey in night

into a dollar’s worth of Steem after a seven day conversion process.”

This seven-day conversion process is meant to minimize the ability to create arbitrage attacs by market timers. If the Steem Dollars were convertible to Steem immediately, a user could take advantage of a difference in price, convert their Steem Dollars into regular Steem and earn more than the $1 worth the smart contract intended for it.

Because it is a stable debt instrument, users who hold Steem Dollars miss out on any Steem price increases. If Steem is worth $1 and this conversion took place,0.5 Steem for every Steem Dollar they owned.

To compensate for the locked value, Steem Dollars accrue interest. At time of story, users that hold Steem Dollars will earn 10% a year in interest, paid out in Steem Dollars
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