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RE: Witness clayop Interest Rate Update
As an aside, I don't think we can rely on @abit's conversion to measure a rate or trend. It is an outlier.
True. If we remove abit's from the calculation, the number is 12% (close to 3% per week)
3% per week is, in general, a dangerously low rate at this point. It means we can not tolerate more than one or two 50% price drops in the next 15 weeks (for perspective, we just had five) without reaching peg failure at 10%. Maybe we will get a little lucky and that won't happen, but going forward we will need a better plan (could include more aggressive action at lower debt ratios, where it is less painful, assuming we do get lucky and climb out of the current hole).
Sorry I cannot understand why "we can not tolerate more than one or two 50% price drops in the next 15 weeks" If STEEM price becomes 1/4 while SBD amount is the same, is the debt ratio around 18%? That is dangerously high number but will it trigger the black swan event?