Vote for this post to help fix the Steem Dollar Peg!
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.