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RE: Witness SBD pegging policy update

in #witness-category8 years ago (edited)

If the parameters are too far out balance then trying to force the peg by spending money can be very costly, including by potentially ending up accumulating a lot of SBD that needs to be held without being adequately compensated for the risk it could fail. It also could tie up a lot of their money indefinitely that they want to use for other development purposes.

Where direct trading can work well is once the parameters are close to a good overall balance, keeping the price stable between 99 and 101 instead of what might be natural fluctuations of 97-103 or even wider.

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