You are viewing a single comment's thread from:
RE: How to make money with Steem and SBD
The conversion function does not work when the market cap of SBD is over of the market cap of STEEM like now.
The conversion function does not work when the market cap of SBD is over of the market cap of STEEM like now.
At least from a code standpoint it seems to be working ok. But can you elaborate?
You can start the conversion but it is no longer guaranteed that you get 1 USD worth of STEEM for one SBD. Thats why SBD is so subtantially below 1 USD now.
Thanks for that. My point was that outside of a couple of less reputable exchanges, SBD is in fact tracking a dollar pretty well. The price shown on coinmarketcap at least is not the real market price. Do you have a reference for your assertion though? I'd love to check that out.
Which assertion do you mean? That the peg breaks (conversion at 1 USD per SBD no longer guaranteed) when the market cap of SBD goes above 10% of the market cap of STEEM? Or that this causes SBD to go below 1 USD?
The ratio of the market caps of SBD and STEEM is called the SBD Debt Ratio because SBD is actually a debt instrument that the system makes possible to redeem at a value of 1 USD. SBD stops being printed when the debt ratio goes above 10% and the printing slows down at 9%. That the conversion mechanism no longer guarantees 1 USD worth of STEEM for every SBD and that the printing of SBD stops at a Debt Ratio of 10% are fail-safe mechanism the purpose of which to protect the price of STEEM from cratering to extremely low levels owing to conversions.
!ENGAGE 25
@markkujantunen you have received
25 ENGAGEfrom @abh12345!View and trade the tokens on Steem Engine.