I am back
I had a job to do in the countryside.
I had flaky Internet and generally little time to follow Steem or even vote.
After being away for a while, I find it hard to get into writing again.
SBD Peg
There are a few ways to stabilize 1 SBD around 1 USD.
Witnesses can passively influence the supply according to the demand.
- SBD are only created through Posting Rewards.
If the price is too high, witnesses can change a parameter that will cause more SBD to be distributed via Posting Rewards (bias).
- converted.SBD can be burned @null and be
If the price is too low, some SBD need to be taken off the market.
The main function to 'burn' the SBD is the 'conversion function' in the STEEM wallet. ( On Steemit.com, it is deactivated. )
If you choose to convert, your SBD will be changed for the average STEEM price over the next week - in USD;
For 1 SBD you will get 1 USD worth of STEEM.
SBD can always be burned @null to promote a post - few people do that.
Since the SBD has been below 1$ for a while, I kept wondering, why I do not read much about SBD conversion ...
https://steemd.com/tx/bbf059a32988c4bd1be372b03b9bb46d5c414184
.... so I tried it out and will report back in a week.
( STEEM price at the moment: ~$0.9 USD )
Why is this not more popular ?
Am I missing something ?
Should I run a script to see, who even uses SBD conversion these days ?
Go through the chain history and make some nice graphics ?
This could well make up a decent contribution to utopian-io?
Is it possible to put together historic graphs showing when it was profitable and unprofitable to convert, and the amount converted at these times?
Welcome back to the Steem, I don't think you missed much :)
I would need historic data from coinmarketcap or somewhere to compare it to.
Then, it should be possible to calculate the profitabilities ...
It would take me a while ...
Could be a nice exercise ...
I support this research! Please do :)
I think it would be very helpful if you could create a real-time conversion and profitability calculator. I think most users would find that kind of tool to be extremely useful and valuable.
It’s actually only 3.5 days.
Couple reasons:
The conversion function was removed from the Steemit.com website, which is the most used interface.
When the debt limit was/is reached, SBD conversions no longer guarantee $1 of STEEM.
I would like to see more burning happening for both SBDs and STEEM. I’m going to incorporate that into each of my projects and business ventures coming online soon.
I am running conversion/buy SBD cycles for quite some time now with my secondary acc (@doctor-cog-diss). As you might be able to see, I started off with ~150 STEEM, and I have converted them to ~500 STEEM in 4 months ot so. Not bad.
Anyhow, you are not getting 10%. The "internal medium price" for STEEM, that you can see when accessing @steemchiller's Steemworld tool (where you can also convert, btw.), and which is used by the chain to calculate the conversions, is much higher than the actual STEEM price. Apperantly, it takes into account the SBD debt in some way.
Anyhow, I get ~2-3% gain on average per conversion. Which is not bad at all. I will report this whole story by post one day.
price min_price( asset( 9 * gpo.current_sbd_supply.amount, SBD_SYMBOL ), gpo.current_supply ); if( min_price > fho.current_median_history ) fho.current_median_history = min_price;So ... the median just gets overwritten ...
I don't code, so I don't know what this means. What I know is: Even when the price was below 30 Cents for weeks, the median was still at 35 Cents. Thus, SBD at 80 Cents did not mean 20% gain per conversion, but you had to calculate: real price / median price = something like 0.82. With SBD at 80, your conversion gain was 2 Cents. And I read somewhere that this was because of SBDs were taken into account for median price calculation.
Can you follow or am I speaking in riddles?
The lines above explain, why and how the median price taken into account to calculate the conversion, differs from the actual median price.
Conversion takes 3.5 days. You don't know the exchange rate at the beginning of the conversion process. If your process would always work, you had invented the perpetuum mobile.
But if you had very much money, you could corner the SBD because of its limited production as follows: Buy a huge amount of SBD, put 20% aside and continue converting the rest in repetition. Thus you will diminish the amount of existing SBD.
Of course.
But as said, this is not the only factor. The conversion rate does not always follow the actual STEEM/SBD median price.
I left out the SBD Marketcap / STEEM Marketcap cutoff, since I was not sure how that exactly worked ...
I'm not sure how it works as well, but it's important to know it before hitting the convert button. Sometimes it makes conversions a loss even tough SBD is at 80 Cent.
Median price ( feed price ) is a value you can just request from the blockchain.
I was looking for it in the code, but do not see where a debt ratio would be taken into account and somehow mixed to the median price ...
.
Good to have you back! :)
I guess people think that 10ct plus through conversion isnt enough..
I also already got way more.. But have no sbd since that.. :]
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Use the generated STEEM to buy SBD off the internal market and repeat ?
People were doing that en Masse and now it's not that profitable anymore..
And we have less debt, I guess :)
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Great to have your thinking back for a better steem.
I did SBD conversion via steemworld once. After that, my SBD were used up and no new ones we printed. So there was no need for taking.
Now that author rewards can gain steem dollars again, conversion will be attractive. You chose the right time for mentioning it.
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I'm sure almost nobody does, I use the convert function in Steemworld to remove SBD from the market though.
I did this via steemworld with a few dozen sbd a while back thinking I'd get a 10% bonus.
However because of market fluctuations (I think?) I actually lost money. Only a few cents.
At least it's a few more burned SBDs!
Have you been building things in the country? I seem to remember you talking about doing that at sf3
SBD is paramount for the success of steem
I'm very interested in any research on that. From an "outside" view, the SBD peg management looks like a pretty random mess.
It is pretty clear once you look at the code.
// This block limits the effective median price to force SBD to remain at or // below 10% of the combined market cap of STEEM and SBD. // // For example, if we have 500 STEEM and 100 SBD, the price is limited to // 900 SBD / 500 STEEM which works out to be $1.80. At this price, 500 Steem // would be valued at 500 * $1.80 = $900. 100 SBD is by definition always $100, // so the combined market cap is $900 + $100 = $1000.XD
Exactly my opinion.
You can use the "convert function" inside steemworld.org (for all people who aren't able to use programming interfaces).
Converting SBD takes 3.5 days until you get your steem for your SBD.
Nailing (=peg) 1 SBD to 1 USD for every situation in the market is wishful thinking. It will never have success 100%, regardless whatever you do.
I don't believe in fairytales any more.
For reference
Internal market: 50 SBD / 156.158 STEEM
Coinmarketcap: 50 USD / 173.461 STEEM
Internal median price: 50 USD / 159.739 STEEM
Conversion 160.918 STEEM
Thanks for visiting my blog!
I follow youHi! @felicxxx.
Trying to clarify exactly what is meant by "burning" SBD. If you exchange it in the market for steem, is that burning it or does it merely put it on the market? Also, does powering up burn steem?
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If you exchange your SBD in the market, someone else gets them.
When you power up STEEM you take it off the market, but they are not really 'burned' since you can power back down.
convert them via the wallet function, you actually destroy those SBD. When you send them to @null or
How does sending it to @null work?
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Well, don't know but still..... welcome back.
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Speaking of Peg....
Have you seen the list of tokens at https://steem-engine.com/?p=tokens? the top token is called STEEMP for 'STEEM Pegged'.... I'm excited to see what @aggroed, yabapmatt and @harpagon have in store!
very good analysist
I haven't a clue what you are on about @felixxx but it sure sounds important and like you know of what you speak, so I hope you stick around here and do whatever crypto magic you need, I want steemit (the place) and steem (the crypto) to stick around, so do your digital voodoo :)
But I have tried to explain as best as I could :(
Oh don't mind me, I'm too busy (or lazy) to try and understand, though I am certain you have done more than a fair amount of explaining. I'm just happy it seems we have people with this knowledge looking out for steemit was all I meant :)
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