A lot of users are converting their SBD to ($1 worth of) STEEM over a period of 3,5 days.
With SBD trading at 85 cents. It's a steal to buy it at 85 cents from the markets and convert it to $1 worth of STEEM.
There are good things and bad things about this.
A good thing is that finally the amount of SBD's (or outstanding debt) is going down because in this process the SBD's are destroyed.
The downside is that right now we are at an optimum for conversion. Which means you get the max amount of STEEM for your SBD adding a lot of STEEM to the total supply.
This explains why the amount of liquid STEEM is currently growing even though the powerups have been increasing a lot in the last couple of days.
The conversion is not without risk though it only works if things stay the same for a while.
Here's why:
An SBD is always worth a dollar worth of STEEM through conversion as long as the market cap of SBD is less than 10% of the market cap of STEEM.
Right now we are right on the edge (9%).
Markcap SBD = $11,661,954 USD
Marketcap STEEM = $126,392,004 USD.
In conclusion:
If STEEM drops a little lower (or SBD goes up) we go over the threshold of 10%.
When that happens the blockchain will give you less than a $1 worth of STEEM for the conversion.
It's very well possible that you come out at a loss (vs using the internal market right now).
If STEEM goes higher you will get $1 worth of STEEM but you will get less STEEM because the price went up.
If SBD stays close to the 10% marketcap of STEEM in the next 3,5 days you will have an optimum conversion!
Good luck converting if you choose to!
Hopefully you are aware of all the risks and benefits now.
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