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RE: Steem post promotion: Past, present, and future
If SBD falls under $1, there would be bots buying SBD from the open market, wait for the 3-day conversion window and repeat the same. Like, no one would let the opportunity like that pass. I think we need to get it to be stable at the dollar price.
Regardless of the source, when there is buy pressure what happens to the price? This is the mechanism that keeps the price near $1 (from below, at least): SBDs priced at <$1 are valuable, so people should want them (slight caveat: the haircut rule is also a factor). It is a distributed, decentralized mechanism. It doesn't work when the price is >$1 because there's no reason to do conversions. Doing conversions would take the SBDs out of circulation and the debt ratio would get better.