Steem Dollars touched $0.73ea on Polo
View this post on Hive: Steem Dollars touched $0.73ea on Polo
Neither Steem, Steemit or Steemit INC can be trusted. Research the #SteemHostileTakeover , and come join everyone else on #Hive .
View this post on Hive: Steem Dollars touched $0.73ea on Polo
Neither Steem, Steemit or Steemit INC can be trusted. Research the #SteemHostileTakeover , and come join everyone else on #Hive .
Hi @ausbitbank - thanks for bringing more attention to this issue.
Currently the price is $0.9567 on Bittrex. This is not great (we want it to be within $.01 of $1 if possible) but $0.95 to $1.05 is generally considered an acceptable range. It is fairly normal for it to drop below $0.95 or above $1.05 temporary, usually due to large buy or sell orders, or dramatic shifts in the market. As long as it comes back 'into range' within a short amount of time, it is not a huge concern.
The whitepaper has this to say:
Changes to the interest rate policy and/or any premiums/discounts on the STEEM/SBD conversion rate should be a slow and measured response to long-term average deviations rather than attempting to respond to short-term market conditions.
A lot of us have been watching the medium/long terms very closely, and trying to calculate / decide what the right move is. It was actually very recently that we were in a situation where we were charging a premium on SBD conversions and talking about ways to push the price down. We are trying to avoid a "knee-jerk" reaction, and look more at what the medium/long-term trends are.
Another factor (unfortunately) is the lack of stability of the main exchanges. It is a separate issue, and one that needs to be dealt with, but it cannot be ignored that a large factor in the price of SBD is likely related to the fact that users are unable to reliably use the exchanges. It is questionable/debatable as to whether or not the witnesses want to adjust their APR policy based on the external factor of unstable exchanges. I don't know if there is a right/wrong answer here, but it is part of the debate.
I recently adjusted my interest to 0.5%, because I had started to notice a medium term trend of SBD frequently being at $0.95, with occasional dips below. I largely blame the exchanges, but my view is that if this is going to be the new 'norm', then we should probably factor this in to the price until they are stable again. I'm hoping the performance improvements the Steemit dev team blogged about will help with this. I have starting to feel that some interest is warranted, which is why I increased my APR to 0.5%. I know it is not much, and maybe it is not enough. It was mainly a signal to start having others look into possibly increasing theirs.
If we do see a prolonged/continued SBD price staying at an equilibrium closer to $0.95, where it rarely/infrequently is making it back to / above $1.00 USD, then I think we should definitely move back to having a small amount of APR interest again. I don't think 5% is necessary, even though SBD is 5% below $1. It doesn't always work out as a one-to-one effect. I would probably aim to start at 1-2% interest and see how it goes. If users are able to get a small amount of interest for buying/holding SBD again, it may be enough to supply the slight increase in demand that is needed to bring the peg back to $1 USD.
One last thing, just so folks have the info - the way SBD APR works is it pays in monthly intervals. If all of the witnesses increased their APR to 1% today, it would not pay out for another 30 days. At that point, users who had held SBD for 30 days would get their monthly portion of the 1% yearly interest. If witnesses don't keep the interest in place for at least a month, then no interest is paid. (This is another reason why it is important to use it as a reaction to longer term trends, rather than short-term market fluctuations.)
Thanks again for writing this post.
This comment should be in a post of its own 🙇
Where can I learn what this all is? I've been posting and using site for 3 days and have no idea how to really get involved.
The FAQ and Welcome page are good places to start.
@timcliff
i support with your comment 👌
Upvoted
@ausbitbank
Wonderful article 😍
Continue 👈
Great - The SBD is < 1$ for several weeks now. I think this is the right decision, thank you for that @ausbitbank :) +1
Half the problem is Poloniex anyway, ausbitbank. Even on Bittrex today, SBD is still 90 cents, which is cheap. I like to buy SBD below $1 for a trade, but part of the issue why I wont switch today is I wont get the ultra cheap rate on poloniex which I do not trust, since I may never be able to withdraw the funds. And 10% trade on Bittrex would be okay if the market were tanking, but it's rallying nicely so I'd rather just own the stuff going higher. Nice thing you're taking steps to try and keep the value in line with $1 USD. SBD would just do a lot better of poloniex closed shop or got its act together.
Just found you @ausbitbank, and your concern about raisind the APR value deserves my 100% upvote, my vote for you and repost ... that is all I can do right now... And keep up the good fight!!!
Hi @ausbitbank, I have voted for you as my witness.
Thanks
I am new to Steemit but posts like this are very helpful, keep up the great work @ausbitbank. I must confess this is way over my head but great to see people taking such an interest in ensuring Steemit is a success.
100% Upvote, Resteem and Follow from #teemnomad!
Going over to vote for you now.
you continue to reward my confidence in you.
You were one of the first witnesses I voted, long before I had any inkling of what a witness even does or anything.
I think maybe aggroed and then you, although those heady days, nearly a month ago were so confusing, that I can't be at all sure.
but well done and I am glad to support you with my vote
Sounds like a good plan, 2% is higher than most U$D accounts offer, (3% would generate more activity, IMO) but we don't want to get too "generous" and fall into the same trap as generated by the F'ed Reserve" system. I've been using my SBD as gifts and for vote-bots, but the savings option would be much more attractive if it actually gave a return! :D
F.U.R.R. For OZ-Bit!
Voted for you based on your position about apr. Thank you from a minnow who does not quite understand what is going on now :)
We're with her @fitinfun on steemit ♨