Actually it does.

This is the main reason that sbd stops being printed at a 10% debt ratio.

I know all the basics. But they aren't enough.

When the debt ratio is below 10% and the sbd price is below 1 USD, the it becomes profitable to buy sbd on the external market and use the conversion function inside the blockchain.

I know.

But the catch here is that the conversions,while it reduces the debt, it also increase the inflation.

Of course.

That is why sbd conversion start to be less profitable (less steem paid for 1 sbd) when the debt is above 10%

I know that. It was a strange mistake to make it so that the printing only slows down when the debt ratio hits 9%. It weakens the peg. But not as much as all SPS funds being paid out in newly minted SBD.

I believe the slowing down of the printing was moved to 9-10% instead of the old 5-10% because the mad SBD pump of 2017/2018 motivated the witnesses to see to it that it would never happen again. But the new rules are causing a lot of problems now. I think they should've postponed the percentage change until the prices of both STEEM and SBD have recovered.