It's unfortunate that the word "convert" is ambiguous, making it easy to be misunderstood, but what you are doing is not using the convert contract, we would call it trading or exchanging Hive for HBD.
"Converting" is using the "Convert to HBD" smart contract, technically "collateralized_convert". This smart contract allows you to convert Hive directly to HBD, without buying it from anyone, at a rate of $1.05 per HBD. Since $1.05 is less than the market price, it is extremely profitable in recent days. The only limitation is that users must post collateral which remains in the contract for 3.5 days, before being returned based on the median value of Hive over that time.
If you look at some users wallets, you can see the conversions that they are doing. Eg. my own:
That makes sense.
I have been converting liquid HIVE to HBD Myself.
That 10% interest rate is really, really nice.
It's unfortunate that the word "convert" is ambiguous, making it easy to be misunderstood, but what you are doing is not using the convert contract, we would call it trading or exchanging Hive for HBD.
"Converting" is using the "Convert to HBD" smart contract, technically "collateralized_convert". This smart contract allows you to convert Hive directly to HBD, without buying it from anyone, at a rate of $1.05 per HBD. Since $1.05 is less than the market price, it is extremely profitable in recent days. The only limitation is that users must post collateral which remains in the contract for 3.5 days, before being returned based on the median value of Hive over that time.
If you look at some users wallets, you can see the conversions that they are doing. Eg. my own:
https://d.buzz/#/@demotruk/c/cpwxeb4smvafix55q6rij8
So hitting "convert" when HIVE is above 1.05 is a win - as long as it stays above 1.05 for the 3.5 days?
It's a win when you sell the HBD for more than $1.05 right after converting, and Hive price doesn't drop substantially over the next 3.5 days.