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RE: Witness Discussion – SBD price and reverse peg
the biggest part I don't understand is: a small spread that would prevent abuse of conversion.
the 3.5 day correction I referred to is the amount of time a conversion would take.
Basically you can buy sbd for 1.01 in steem and sell for 0.99. That way each back and forth conversion costs you 2 cent. So if there is a chance of you being able to abuse the conversion (which we don't think there is) you have to make 2% profit to break even.
And yes, 3.5 days for the conversion.