thanks for explaining about it i was not aware about it the things are bulletproof that is made to secure steem future

That is very interesting.  Thanks for pointing this out and investigating it some more.  To be honest, I don't really pay attention.  I mean I pay attention to the price, but I kind of have the opinion of "I get what I get and I don't throw a fit" when it comes to rewards :)

Nice investigative work there @exyle! It certainly looked weird on the surface but good to know that things are actually working as they should.

That looks complicated, 

Posted using [Partiko Android](https://steemit.com/@partiko-android)

At that difference the fair value of SBD is currently $0.80. But unlike before, if the price goes down from here you won't get more Steem than if it stays the same, so really it should be lower than that, and it is.

You could buy SBD now for a 30% return if it ever goes back to $1. However in that scenario, Steem will probably have risen much more than 30%. That is, unless we get some serious SBD-induced inflation in between now and recovery.

You are a very attentive blockbrother. Have a beautiful day!

Hmm, that seems like an interesting way to combat having too many Steem created from 1 SBD. Even though the market says Steem is around 30 cents, the blockchain says it is ~41 cents in order to produce less Steem per SBD when people convert through the blockchain.

So I guess the reason why that whale is dumping his SBD is because he expects the price of Steem to go lower and he won't be able to convert his SBD for a lot. Better to get out now and then perhaps buy back in later?

By the way, who is this whale you are talking about? If you don't want to say his name, can you at least give me a hint or some way to find out on my own?🙃🙃

Guide us with your knowledge lord exyle

Isn’t there also a mechanism to apply an APR on the protocol to incentivize demand for price increases on SBD?  Although this may deepen the ratio, it could lead to hold the peg, right?  Not sure which should be the first line of defense though!

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This is why：

```
            if( has_hardfork( STEEM_HARDFORK_0_14__230 ) )
            {
               // This block limits the effective median price to force SBD to remain at or
               // below 10% of the combined market cap of STEEM and SBD.
               //
               // For example, if we have 500 STEEM and 100 SBD, the price is limited to
               // 900 SBD / 500 STEEM which works out to be $1.80.  At this price, 500 Steem
               // would be valued at 500 * $1.80 = $900.  100 SBD is by definition always $100,
               // so the combined market cap is $900 + $100 = $1000.

               const auto& gpo = get_dynamic_global_properties();
               price min_price( asset( 9 * gpo.current_sbd_supply.amount, SBD_SYMBOL ), gpo.current_supply );

               if( min_price > fho.current_median_history )
                  fho.current_median_history = min_price;
            }
```

I wrote an article about median_history_price:

* [Why is median_history_price no longer the median of feed price? My investigation.](https://steemit.com/witness-category/@oflyhigh/why-is-medianhistoryprice-no-longer-the-median-of-feed-price-my-investigation)

Seems like the whole system goes a little wonky when the price drops. I had recently gained, and again lost, Billions of Dollars by such a snafu, lol!

@exyle,
Really valuable and the first comment under this also useful! Thank you!

Cheers~

Great job detective exyle! I guess we're currently triggering all the edge-cases.

good stuff, thanks for the info! you are better at this than bowling :)

See! This is why i follow your blog posts @exyle! These blockchain intricasiese are good to know. I was really confused by the .41 price in steemnow that was not changing eventhough everyone was talking about Steem price being in the 30's. Steem on friend!