You are viewing a single comment's thread from:

RE: Why is median_history_price no longer the median of feed price? My investigation.

in #witness-category • 5 years ago (edited)

Can anyone comment on if this effects the old convert​ sbd to steem function?(which was taken out of the gui, but is till an active feature?)

Or is the price feed still pointing to an actual dollar rather than SBD? I understood that the feature burned SBD in cases like now where SBD id less than $1

Posted using Partiko Android

5 years ago in #witness-category by
$0.08
  • Past Payouts $0.08, 0.00 TRX
  • - Author $0.06, 0.00 TRX
  • - Curators $0.02, 0.00 TRX
1 vote
Reply 3
Sort:  
  • Trending
    • [-]
     5 years ago 

    Convert function use the median_history_price, currently very close to internal market prices.

    $0.00
      Reply
      [-]
       5 years ago 

      Ok thanks. I'm surprised, I thought this mechanism was there to reduce the sbd supply if it was slipping it's peg, but you're telling me that it is just pegged to the market prices of steem. No wonder sbd is losing right now.

      Posted using Partiko Android

      $0.00
        Reply
        [-]
         5 years ago 

        It is. But by design, if STEEM market cap is too low, SBD will jump off the 1$ peg. See https://steem.com/wp-content/uploads/2018/10/steem-whitepaper.pdf . quoting in section about sustainable debt ratios:

        A rapid change in the value of STEEM can dramatically change the debt-to-ownership ratio. The blockchain
        prevents the debt-to-ownership ratio from getting too high by reducing the amount of STEEM awarded
        through SBD conversions if the debt level were to exceed 10%. If the amount of SBD debt ever exceeds
        10% of the total STEEM market cap, the blockchain will automatically reduce the amount of STEEM
        generated through conversions to a maximum of 10% of the market cap. This ensures that the blockchain
        will never have higher than a 10% debt-to-ownership ratio.

        Note that conversions still reduce the SBD supply, which in turn affect the debt ratio.

        $0.00
          Reply

          Coin Marketplace

          STEEM 0.27
          TRX 0.12
          JST 0.031
          BTC 57842.09
          ETH 2895.96
          USDT 1.00
          SBD 3.56