Given higher SBD price than the peg, I have decreased my interest rate to 7% while I kept the discount rate at zero.
If the market seems strong uptrend, I will put premium instead of discount on feed price.
For your information, here is a short summary about the rules in the white paper p.14 (while some numbers are required to be updated)
1.If SBD > $1.00, then no interest
Any time SMD is consistently trading above $1.00 USD interest payments must be stopped.
2.If debt ratio is low and SBD < $1.00, then more interest
If the debt-to-ownership ratio is under 10% and SMD is trading for less than $1.00 then the interest rate should be increased
3.If debt ratio is high and SBD < $1.00, then feed discount
If SMD trades for less than $1.00 USD and the debt-to-ownership ratio is over 10% then the feeds should be adjusted upward give more STEEM per SMD
4.If debt ratio is dangerously high and inactive SBD conversion, then feed discount (the expressions are somewhat subjective)
If the debt-to-ownership ratio gets dangerously high and market participants choose to avoid conversion requests, then the feed should be adjusted to increase the rate at which STEEM paid for converting SMD.
IMO, we were in the third case when Dan suggested the discount (but not exactly matched since debt ratio was 2.8% and increasing and SBD was $0.88). Now, SBD is over $1.00 and debt ratio is 4.9% but not increasing since November, so there are less demands to have discount (at least at high rates). However, the fourth case can be still valid, so we are testing whether removing discount will causeinactive SBD conversion.
I personally continue to convert SBD until reaching the break-even point. Currently I earned 14.3% or about 1,000 SBD so there is some margins to keep working on it.
Best,
clayop