SBD currently collecting 0% APR. How does it work?steemCreated with Sketch.

in steemit •  7 years ago 

I've searched steem for this very same topic and found some other posts but no answers!

In my undestanding from the STEEM whitepaper SBD should pay interest but apparently they doesn't, or it is not what APR refers to.

  • What does SBD APR refers to?
  • How is the interest for SBD computed?
  • Are you generally just selling SBD for SP/STEEM right away?
  • Who is buying SBD if it's not even paying interests? Why?
  • Do you see a strategy where you sell SBD when STEEM prices goes up and buy SBD when STEEM price goes down? Have someone implemented it yet?

Thanks for the help!

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This is something i also would like to know. Cant find much info on it, keen to follow this up!

Yes, I am just curious to understand exactly how it works (: followed and upvoted so we share our questions!

Do you see a strategy where you sell SBD when STEEM prices goes up and buy SBD when STEEM price goes down? Have someone implemented it yet?
A: Yes, but its not so easy to spot this kind of price movements and when they happen they are very fast. So, it's sounds good in theory but not so enjoyable in practice.

A: However, you always want to have SBD when the price starts moving up, cause having less supply is better than having more in term of elasticity of the price (12.821.558 SBD vs. 254.092.069 STEEM).

My grain of salt. :)