The conversion rate of SBD to Steem is determined by the debt ratio not the price on the internal market:
The SBD debt limit that is set at 10% (often called the 10% "haircut" rule) ensures that no matter what happens to the STEEM price, the SBD debt ratio will never be allowed to exceed 10% of the STEEM marketcap.
It does this by reducing the liability of SBD conversions if/when the debt ratio exceeds 10%. If a user converts SBD to STEEM while the debt ratio is over 10%, then they will get back less than their ~$1 USD worth of STEEM. This transition happens gradually, and has a linear relationship to the distance the debt ratio is over 10%.
For example, if the debt ratio is at 10.01% the converter will get very close to ~$1 USD worth of STEEM. At 10.02%, a little less, and so on. By the time it reached a 20% debt limit, SBD conversions would result in ~$0.50 USD worth of STEEM.
Source: https://steempeak.com/sbd/@timcliff/sbd-explained
The current debt ratio is at 10% so no "haircut" yet. In fact the supply of SBD has been reduced by more than a million in the last few days due to the conversions and the debt ration is stable at 10% for the time being.
EDIT: the median price used for the conversion rate is taken from the price feeds of the witnesses not from the internal market. At this time the debt ratio should be at around 12% so the conversions should pay about 83 cents on the dollar (10/12). It's odd that Steemworld is still showing a debt ratio of 10%.
.
Thanks for the link. @timcliff explains it well there.
I've been keeping an eye on the conversions. We had a spike on the 18-19 Nov but over the last 5 days there's been less than 250K SBD converted total so the debt is not dropping that fast. I have the debt ratio at closer to 13% once the delayed feed price comes through. I might have the calculations wrong, but I think steemworld has maxxed it at 10% because technically - that's as high as the debt is allowed to get. It's the conversion rate that suffers.
I'll recheck the math but I think that when the feed catches up with market price then SBD conversions be at that level if the STEEM price doesn't bounce.
I estimated the supply using the historical data from https://coinmarketcap.com/currencies/steem-dollars/historical-data/ dividing the marketcap by the closing price.
13% is probably closer to reality than 12% (I did the math in my head so I was probably off by some decimals).
No worries. There has been about a 10% bounce in the STEEM price since I wrote this and that might be enough to keep the wolves from the door if we've found a bottom.
I still find steemworld more useful than coinmarketcap.com because it shows the current supply of both STEEM and SBD in real time and it shows the various feed and external prices too. I did have the debt level near 13% but on this rally its now lower so I have par at about 85 cents for the SBD. This is now slightly higher than market price so we're closer to equilibrium here.....