The HIVE/HBD conversion works with the market to keep the HBD dollar peg.

So, if the price of HIVE was $0.95 and you traded it on the market, you would only get $0.95. In this case, it is better to use the conversion. You have to wait three days, but you will get a full dollar.

When I see the the price of HBD is above a dollar, I will convert HIVE back to HBD.

There are numerous bots, like the HBD stabilization fund, that play HBD/HIVE arbitrage.

I figure that I will support the peg. When I see the price is below 97% I use the conversion process. If it is above, I use the market. If HBD was over $1.03, then I convert any free HIVE in my account back to HBD.

I like this formula. The system successfully maintains the peg without paying interest on HBD.

!WINE