SBD update: Conversions currently profitable
I wrote a lot about the broken SBD peg and today I decided to given an update version of our 'stablecoin'.
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On the vertical axis the effective peg of SBD is shown in $, while the horizontal axis shows the price of steem in $. Blue is the peg via conversions assuming a fixed price in the conversion period, orange is the actual peg including price fluctuation risk (assuming the volatility of the past month). The thin black lines show current price of both SBD and steem.
The current price levels are below the guaranteed peg and thus converting should be profitable right now. It is not a lot down so there should not be big profits, but it is and has been consistently a little down. I guess a lot of people have lost money converting and are now keeping away so the price can stay a bit below the peg.
Compared to my earlier posts the debt ratio is slowly improving due to conversions even at fixed steem price. This is positive and slowly raises the value of the remaining sbd's. But this is a very slow process. Since the broken 1$ peg it is hard to understand for an average user when this is profitable and thus conversions happen at a very slow rate.
so tldr ... converting one Steem backed dollar does not generate one dollar worth of steem?
yes, but more than the current market price of SBD.
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Haha have no sbd no more
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