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RE: Why is the current interest rate of SBD at 0%?

in #steemit7 years ago

SBD is already trading at higher than its $1 USD target price. Paying interest would only exacerbate this problem. The interest rate is therefore set at zero partially as an attempt to restore the $1 USD target, or at least prevent additional drift higher from it.

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Why is the STEEM Backed Dollar trading for more than one dollar?

Nobody is really sure why, but its been trading at nearly double the target (so...$2). The only answer I can give as to why is "supply and demand".

Up vote for "supply and demand", for sure.

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