You are viewing a single comment's thread from:
RE: Thoughts on STEEM-Backed Dollars and Holding the Peg
It could help by increasing the supply, but in my opinion, I think we still need to wait a little longer to see what the effect will be from the recent price spike and SBD creation. If prices are still high in a month or so, then we should probably start discussing the options. But even then, we would need to look at the market conditions in general to get an idea of what the causes are. If it's simply a matter of strong market trust/confidence instead of supply/liquidity, there's not much that can be done about it.
That SBD doesn't hold the peg almost at all during a price spike is a problem that could use addressing. There will always be price spikes. We shouldn't expect them to break a pegged asset.
That said, this issue started before the price spike, so it is more difficult to characterize the underlying causes.
I don't agree there. We can create a trillion SBD. It can always be a matter of supply if that's what it takes (though not exclusively that)