Question: SBD conversion to STEEM on steemit

ssexyryan (25)in #steem • 7 years ago (edited)

Hi guys,

I am studying STEEM these days as a way to study blockchain and I'm stuck with two issues now.

How conversion ratio btw SBD and STEEM is determined on Steemit?(lets forget about outside exchanges)

I thought SBD can be pegged to US$1 by interest rate and conversion rate controlled by witnesses.

So my question is

What is price feed? Are the witnesses gathering price information of 'STEEM' from exchanges? If so, how STEEM : SBD conversion rate is determined?
or, is that price of 'SBD' that witnesses are proposing, and we call that price feed?
Are people using SBD → STEEM conversion on Steemit? it seems that it would be much better to sell SBD on exchange and purchase STEEM on the exchange(if Steemit sticks to 1SBD = $1 as Steemit intends to maintain the peg)

Thanks for reading. God bless you

7 years ago in #steem by ssexyryan (25)

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ssexyryan (25) 7 years ago (edited)

Answers

SBD → STEEM ratio is determined by STEEM's price feed.
STEEM price /SBD (= US $1)
I am pretty sure nobody is converting on steemit. Because price of SBD is much higher than $1.

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