Nicely put! If SBD breaches 10% a conversion would require more steem than is what is in existence and crash the system. Therefore the SBD can only remain pegged as long as the price of Steem doesnt get "too low"...
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Not quite, the system won't "crash" until that ratio hits 100% , and the conversion actually creates the steem - and we have more mechanism's in place to reduce SBD debt before that ..
But hopefully these changes have just reversed the trend :)
Yes hopefully they have! :)