RE: SBD isn't broke: How SBD works on STEEMit

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SBD isn't broke: How SBD works on STEEMit

in steem •  8 years ago 

Hey, you mind going into more detail? It sounds like you may get it... and I still do not.

So-- when I do a 7 day conversion, what happens behind the scenes?

If the market expects that STEEM will go down, then..... SBD will trend lower because.... ?

Sorry, it seems to me like you're the best hope of really understanding this mechanism better than I do now :).

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When you request a conversion, the conversion rate is base on the median price in coming 7-days (sampled hourly).
So if the market expect a fall of 30% price linearly in next week, that means your SBD is expected to be converted at 15% discount from current price.

This could also be another reason for the price to be a bit lower. Again, howerver, SBD is not "broken"... it more needs to grow up and be tweaked a bit over time more than likely.