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RE: How the Steem Dollar Peg Works
If there are rapid price fluctuations, it may or may not be in your best interest to convert your Steem Dollars (you might get an overly good deal or overly bad deal or even exchange). The point is that you can't predict what you'll get at the time you execute the contract. Over time, most likely you'll average an even exchange rate between SD and STEEM.
I wonder though if the constant high inflation of STEEM means that over time your exchange rate between SD and STEEM will actually be slightly biased towards discounted SD.
Slightly yes but not as much as the actual discount. This could be corrected for by a slight offsetting adjustment in the feed price, if that made the difference (but it doesn't).
Yeah, I guess it's pretty obvious that inflation wouldn't account for a 15% discount. So why aren't large players betting on the peg and buying up all the SBD at discount?