The big question, and I mean HUGE question, is whether this is also the point where the SBD Peg is fixed to have Bi-Directional Conversions so that this problem does not repeat. That is ultimately going to be for the Witnesses to decide and I’m not particularly optimistic.

Reverse convert and convert for SBD and STEEM to peg SBD to 1 USD.

Covert process- if SBD is less than 1USD, it can be converted to 1USD equivalent of STEEM, conversely, if SBD is above 1 USD, then STEEM can be converted to USD equivalent of SBD.

For example, if STEEM is $4, then when SBD is below $1, it can be converted to 0.25 STEEM while SBD is above $1, STEEM can be converted 4 SBD.

I am confused about supply souce of both SBD and STEEM- where they will come form. If somebody can explain the supply source of both "SBD and STEEM" in this convert scenario, it will be helpful.

However, it will definitely peg SBD to 1 USD. There is a market demand for 1 USD pegged stable currecny such as Tether, TrueUSD or NuBit, most importantly, it will be helpful in future internal exchange for SMTs due to its stable value.