SBD Potato Day 2: Now using the @Likwid service!
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Vote for this post to help fix the Steem Dollar Peg!
Incase you missed it; here is THE LINK to the intro post about @sbdpotato.
TlDr, you vote for @sbdpotato's daily posts and the rewards @sbdpotato earns will be used to purchase SBD on the internal market, convert it to STEEM (reducing the SBD supply) and then the converted STEEM will be used in a circular fashion to purchase more SBD - Rinse Repeat! That's basically it!
Today's SBD Price (Spot): 0.6906 USD
Current Debt Ratio: 13.92%
Target Debt Ratio: 9.90%
How does the debt ratio work?
According to the Steem Whitepaper:
If the amount of SBD debt ever exceeds 10% of the total STEEM market cap, the blockchain will automatically reduce the amount of STEEM generated through conversions to a maximum of 10% of the market cap. This ensures that the blockchain will never have higher than a 10% debt-to-ownership ratio.
This means that while the debt ratio is 10% or less and assuming the STEEM price remains relatively stable during your 3.5 day conversion; when you convert 1 SBD you will receive approx 1 USD of STEEM at the end.
If the debt ratio is 20% you will receive only 0.50 USD of STEEM per 1 SBD converted. Right now we are just inbetween that, around a 14% debt ratio, which means you will receive +/- 0.70 USD of STEEM on each 1 SBD conversion; this is why SBD is only selling at 0.69 USD, because its convertible value is only about that value, make sense?
Thanks to @smooth for explaining this concept in an ELI5 manner!
Using the @likwid service
@sbdpotato has decide to try out the @likwid service, how it works is you set the @likwid account as 100% beneficiary of your post. Likwid receives the staked SP and the liquid STEEM/SBD when the post pays out and then automatically pays you everything in liquid funds minus a small 1.5% fee. Simple right! SBDpotato is going to test it!
Check out this Likwid service post for more details.
What do you get out of supporting @sbdpotato?
Well firstly by voting this post you will be helping fix SBD to get it pegged to 1 USD again as it was meant to, this could also help bring the STEEM price up with it. There is a theory that the two are circular, a strong SBD gives support to healthier STEEM prices, perhaps due to positive sentiment in the network.
In addition to doing your part to improve the economy of the Steem network, you will also earn SP curation rewards from voting the post that hopefully get decent traction.
You can set the @sbdpotato account on autovote using a service like beta.steemvoter, by creating a stream to autovote the @sbdpotato account at around 4 or 5 minutes as per the screenshot below. There are also other autovoter services you can use if you prefer.
Conclusion and Disclaimer
As custodian of this project I, @thecryptodrive, will not derive any monetary value therefrom and undertake this under my duty as Steem consensus witness and ambassador.
I hope the Steem community will embrace this idea of supporting the SBD peg by voting the @sbdpotato posts regularly, alone we are powerless, together we can bring about change.
Sponsors
If you would like to have your banner featured on the daily posts, simply upload your banner in our comments sectiona and pledge to vote for @sbdpotato daily and/or include @sbdpotato as beneficiary of your own posts!
When the peg is healed you can also lock the STEEM on saving account so if the peg somehow breaks again in the future the project doesn't need to snowball from zero all over again.
I'm setting up autovote for this project, hopefully the peg will be restored. 👍
Yip that was suggested as well by some others, I will do so. Thanks for supporting this project.
By the way - to quickly exchange STEEM to SBD simply send STEEM to @bank.sbd with memo: swap
The bot will make exchange on the internal market, the fee is 0% :)
Cool, I tested that out, and it worked as promised!
:)
Hi @cardboard
Apparently they do not charge commission.
But when you take the Steem price account with respect to the SBD they calculate the Steem at a higher price so they deliver less SBD. I already did the tests,
I coded it ;) The bot makes transaction on the internal market taking current prices. So when you sell STEEM for SBD, the STEEM ask price is taken and the exchange transaction is performed. The previous transaction could be with lower price but the bot does not have time to make a waiting order and instead just grabs the STEEM that is offered :)
Hi @cardboard
Thanks for the explanation, this type of xpres exchange is very good ..
It must be more widespread.
Ah sweet, I will try that for sure thanks so much!
I set up a autovote for this project with 100%
Posted using Partiko Android
thanks so much!
I like the project and the effort to fix the peg!
This post earned a total payout of 22.989$ and 17.285$ worth of author reward which was liquified using @likwid. To learn more.
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interesting
I do not think this is going to work.
have faith!
No. I think the market will see this as more deception and reject it.
How is it deception? It is using the conversion tool which is a native blockchain function for the very purpose of supporting the peg. Just the funding source is the rewards pool rather than individuals risking personal funds in conversions that are currently subject to the haircut.
Exactly! The rewards pool is meant to reward good content creators. Not to try and peg SBD.
What happen no comment? So it is deception then and you know it.