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RE: APR anyone?
Thank you for answering smooth.
this makes sense.
this is sad for SBD and steem overal. i was really hopeful we could have a stable currency on steem.
I guess in the longterm price should come back. However with this much fluctuation the usefulness of sbd is really questionable.
I agree with you of course, but the sad reality is that when the price of STEEM drops by about 95% there is unfortunately not all that much we can do (other than perhaps reexamine why we have not been doing a good enough job of communicating Steem's value to investors). At that point things start to bend if not break.
Yea I guess a little bit of bending is also ok.
What I think was a mistake:
Printing SBD until a debt ratio of 10 and then immediatly causing a haircut. It would be better to print until 5% and then start the haircut at 10% or maybe later
I think we also need a way to print SBD when we are in the safe zone, i.e. when below 5% we should be able to convert SBD to steem somehow
We used to print up to only 5% but that causes other problem. In fact if you look at the numbers whether printing happens or not doesn't really mater much to where the debt ratio ends up. The amount printed ends up being pretty tiny compared the the effect of STEEM price changes. (Printing for an entire year only generates about 2% of STEEM market cap worth of SBD!) With printing for an extra month during a downturn you might end up at 12% but without printing 11.8% or something. Just not a big difference, and not worth the other negative effects of a print halt IMO.
:(