I think this is interesting, and it goes to show I either really don't understand a fundamental part of how STEEM vs SBD economy is supposed to work. Since last night, SBD has been trading below the magic $1,- mark.
Now what I would expect to see right now would be the economic incentives towards pegging kick in. The convert command (that has been removed from the web interface but is still available through the API) should allow for using the blockchain for converting SBD to STEEM at an exchange rate lying above that of the market. And if we look at the convert transactions since SBD started dropping below $1.000, there is something happening.
But then, these are just a hand full of accounts converting amounts of SBD that are rather small compared to the amounts we would expect to be needed to drive the market back to peg level. I thought this would be a great opportunity to see convert based pegging in action, but the rate of convert usage and more importantly the volume of SBD is nowhere near the volume I would expect from this mechanism.
This could mean one of multiple things:
- I really don't understand how SBD pegging is supposed to work
- Most people holding large amounts of SBD don't know they can get above-market prices for their SBD by using convert
- Without an option to do so from the steemit user interface, most people holding large amounts of SBD don't know how to use convert
If it is #1, please enlighten me on this subject. I'm interested in learning how this stuff works.
If it's #3, should convert be added back to the steemit web interface?