The Conversions are in!
So 4 days ago with SBD dropping way below $1, I was reminded of one post of mine all about the somewhat "hidden" mechanism on Steem that allows the internal conversion of SBD to Steem at a flat rate of $1. If this is your first time hearing about that one, then read my blog post about it from months ago: How to convert SBD to STEEM at a flat rate of $1! or I heard you could simply use SteemConnect for this although I lost the link. XD
So in other words, say if the current price of SBD & Steem on the market is $0.5, with STEEM's internal contract you could convert that same SBD like its $1. So 1 SBD gives you 2 STEEM. Or so I thought until I read this post: SBD Haircut rule is about to activate (do not convert).
Anyway, since I read that post quite late, might as well share to all of you what happened to the SBD I converted internally. So 4 days ago, I've sent some liquid SBD to my test alt account @clauxklein in order to internally convert 1.398 SBD and 1.463 SBD to liquid Steem. Since I am using a third-party tool, I am using my alt account just in case something fishy happens (Nothing bad happened though! XD). But Prevention is better than cure!
Now your next question woudl probably be something in the lines of: Which is more profitable, the internal conversion or the market conversion. So before I converted those liquid SBD, I took some Screenshot as to how much would I have got if I used the market.
As seen above, My 1.398 SBD would have gotten me 2.739 liquid STEEM. It is worth to note thought that the price at that time was still $0.51. And hours later, I've made another conversion request for 1.463 SBD which would have gotten me a 3.048 STEEM at $0.48 price.
3.5 days later and the conversions are in. To which as you can see below gives me more liquid Steem compared to converting on the market. I'm not really sure if the SBD Haircut Rule was already activated at that time, but yesterday when I checked the SBD Debt ratio it was 11.11%. Not sure if the internal conversion is basing it on a 3.5 day average though.
So I'm just sharing my experience here, I am in no way saying which method gives one more liquid Steem. With how fast Steem is decreasing, no one knows for sure what method is much preferrable. So use it at your own risk. XD
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