Thank you for asking this @cryptokannon

Ok, let me explain a bit more.

STEEM/SBD ratio is simply the ratio of price of STEEM to SBD.

For example,

Now the STEEM price is $0.155 and SBD price is $0.951

So STEEM/SBD ratio= 0.155/0.951= 0.162

But Debt ratio different.

Debt Ratio= Total Market Cap of SBD/ Total Market Cap of STEEM

The current Debt Ratio is at 9.1%(refer to the article for a detailed calculation)

Market Cap= Price of Token * Total Supply

So STEEM/SBD ratio & Debt Ratio are different.

Now the STEEM/SBD ratio is 0.162 , so roughly 6.17 STEEM tokens are required to back 1 SBD.

If the STEEM Price will go to 0.22 again(say), then STEEM/SBD ratio will also go up, may be 0.22/1= 0.22 so, in that case 4.54 STEEM tokens are required to back 1 SBD.

So if the ratio of STEEM/SBD goes up, it helps in reducing the Debt ratio, but STEEM/SBD ratio is not same as Debt Ratio, as Debt ratio is the ratio of Market cap of SBD to STEEM, so the total supply figures also comes into effect in Debt ratio.

In general, we can say, as long as SBD respects the peg of 1 SBD= 1 USD, the higher the STEEM/SBD ratio, the lower is the Debt ratio and vice versa.