Median price feed stuck? Payouts displayed wrongly? (Solved).

oflyhigh (79) 6 years ago

This is why：

            if( has_hardfork( STEEM_HARDFORK_0_14__230 ) )
            {
               // 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.

               const auto& gpo = get_dynamic_global_properties();
               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;
            }

$0.75

2 votes

exyle (79) 6 years ago

So this price feed is calculated like this right now?

285,502,123 STEEM / 13,077,523 SBD

9 x 13,077,523 = 117,697,707 SBD (STEEM SBD value MAX).

117,697,707 SBD / 285,502,123 STEEM = $0,413 = Price feed.

$0.00

tonymullins (43) 6 years ago

I've noticed that the exchange rate is great on Blocktrades for Steem to Dogecoin maybe a worthwhile conversion.

$0.00

demotruk (69) 6 years ago (edited)

At that difference the fair value of SBD is currently $0.80. But unlike before, if the price goes down from here you won't get more Steem than if it stays the same, so really it should be lower than that, and it is.

You could buy SBD now for a 30% return if it ever goes back to $1. However in that scenario, Steem will probably have risen much more than 30%. That is, unless we get some serious SBD-induced inflation in between now and recovery.

$0.27

2 votes

exyle (79) 6 years ago

SBD could drop further if STEEM goes lower.

Right now you can only convert 1 SBD to 2,42 STEEM max (75 cents).

If STEEM goes to 20 cents you can only convert 1 SBD to 2,42 STEEM (0,48 cents).

I understand perfectly now why 1 big whale in particular is dumping his SBD.

$0.00

demotruk (69) 6 years ago

Considering that, the price should really be much lower than it is. It's a lot of risk for little reward, at least compared to holding Steem, since the same situation which SBD goes back to $1 Steem will probably have gained much more.

It kind of shows how a token can get detached from the underlying backing.

$0.00

chrisrice (59) 6 years ago

So it sounds like SBD is backed by Steem but only to an extent @exyle. That is what I understand based on this comment.

Thank you.

$0.00

demotruk (69) 6 years ago

Yes, once the amount of SBD is above 10% of the entire market cap, SBD goes into a partial default mode where it will only pay out as if the SBD price was where it's exactly 10% of market cap.

So SBD is a contract where it's backed by $1 worth of Steem up until that point, when it's only partially backed.

$0.00

oflyhigh (79) 6 years ago

I wrote an article about median_history_price:

Why is median_history_price no longer the median of feed price? My investigation.

$0.20

exyle (79) 6 years ago

Awesome thank you so much!

$0.00

theguruasia (67) 6 years ago

@exyle,
Really valuable and the first comment under this also useful! Thank you!

Cheers~

$0.14

5 votes

kenanqhd (68) 6 years ago

Hmm, that seems like an interesting way to combat having too many Steem created from 1 SBD. Even though the market says Steem is around 30 cents, the blockchain says it is ~41 cents in order to produce less Steem per SBD when people convert through the blockchain.

So I guess the reason why that whale is dumping his SBD is because he expects the price of Steem to go lower and he won't be able to convert his SBD for a lot. Better to get out now and then perhaps buy back in later?

By the way, who is this whale you are talking about? If you don't want to say his name, can you at least give me a hint or some way to find out on my own?🙃🙃

exyle (79) 6 years ago (edited)

Yeah, I guess thats the most likely reason. The whale is Freedom.

$0.00

newageinv (70) 6 years ago

Isn’t there also a mechanism to apply an APR on the protocol to incentivize demand for price increases on SBD? Although this may deepen the ratio, it could lead to hold the peg, right? Not sure which should be the first line of defense though!

Posted using Partiko iOS

exyle (79) 6 years ago

Increasing the APR gives an incentive to hold SBD I guess because you get interest. But it will just create more and more.

This whole mess started with the STEEM price going parabolic and many SBD being printed. They all need to be covered now by STEEM and it can't be covered unless STEEM goes up again.

So now the peg has been broken on the underside as well as the top side. I might have to rethink my ideas about SBD's after all this.

$0.00

yogajill (62) 6 years ago

See! This is why i follow your blog posts @exyle! These blockchain intricasiese are good to know. I was really confused by the .41 price in steemnow that was not changing eventhough everyone was talking about Steem price being in the 30's. Steem on friend!

exyle (79) 6 years ago

Cool! Glad it was helpful!

$0.00

yogajill (62) 6 years ago

Now eagerly waiting for your interpretation of Ned's announcements regarding Steemit. As well as your take on having witnesses help out in this situation. @anyx made a good comment in Ned's post. I could not comprehend the jargon in it mind you. But, it gave me a positive feeling intuitively.

$0.00

bozz (71) 6 years ago

That is very interesting. Thanks for pointing this out and investigating it some more. To be honest, I don't really pay attention. I mean I pay attention to the price, but I kind of have the opinion of "I get what I get and I don't throw a fit" when it comes to rewards :)

onnovocks (49) 6 years ago

Seems like the whole system goes a little wonky when the price drops. I had recently gained, and again lost, Billions of Dollars by such a snafu, lol!

$0.00