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RE: Witness SBD pegging policy update
Haircut is a euphemism for going bald here. A haircut grows back, but it is hard to see how SBD can recover once the peg is history.
Haircut is a euphemism for going bald here. A haircut grows back, but it is hard to see how SBD can recover once the peg is history.
It can recover if held and the STEEM market cap increases and/or if debt is sufficiently reduced such that total SBD outstanding drops below 10%.
The payoff profile for holding SBD while near the 'haircut' limit, ignoring the question of debt reduction, is similar to that of holding a covered call position on STEEM: downside as with STEEM, but trading upside for premium income (interest here).