Wise is a decentralized Ether-backed investment platform that is designed for staking the Wise token. It is intended to become a global and open alternative to the traditional financial system. Wise Foundation was established in February 2020 and the mainnet launch of the Wise contract was on October 8, 2020.
The Wise project consists of smart contracts capitalizing on token liquidity formation, a referral system, and token staking capabilities. Its main product that makes the entire system work is its WISE Token, an Ethereum-based DeFi cryptocurrency.
WISE is an ERC-20 compliant token that has been in development since December 2019. It is fairly launched, automatically liquid, trustlessly exchangeable, interest-bearing, and bond-like. WISE resembles some financial tools like saving bonds and certificates of deposit having a key distinction: WISE pays all profits back to its users in the form of interest. The base unit of WISE is called YODA. One WISE is composed of one quintillion (1×1018) YODA.
There is no predefined total token supply. The initial supply was created by users through the Liquidity Transformer while the demand for the token is created by means of the referral program. The Wise Foundation and the team owns no WISE tokens and no free airdrops are supposed.
Uniswap is used for the project’s DEX though it is traded also on some other exchanges as well. About 90% of the gathered funds will be sent to Uniswap, forming the first liquidity pool for trading activities. 10% (but no more than 2,000 ETH) of the raised assets will be transferred to an Ethereum address owned by the Wise Foundation to cover the costs incurred in developing and launching WISE.
According to the White Paper, the overall project’s existence is divided into two main periods that are called epochs. The first one, Liquidity Transformer Epoch, started together with the launch of the project when it had become possible to reserve WISE tokens. Liquidity Transformer is the project’s option that is designed to generate the main liquidity pool for WISE by reserving WISE tokens.
Reservations can be made with ETH and any other ERC-20 token that is traded on Uniswap as it will be converted into ETH through Uniswap. Funds collected for WISE reservations are managed by the Uniswap protocol.
It was a 50-day phase that started on November 11 and lasted until December 30, 2020. There were five million WISE available each day on average. At the end of the day, the WISE tokens devoted for that day are distributed proportionately among those who sent ETH throughout that day. 3.3 million USD was raised during this period.
Circulation Epoch is the next period of the project. According to the White paper, at this point, no further token reservations can be made and users may begin staking WISE. But according to the platform’s website, the option of reserving WISE is still available after December 30, 2020.
Staking is the primary function of the contract during the Circulation Epoch. The WISE tokens can be staked for a period from 1 day to 42 years (15,330 days). The minimum stake amount is 0.000000000001 WISE (1 million YODA). The interest rate depends on the number of people who also staked WISE at this time and the length of the lock-up period. Up to 30% interest can be earned.
The staked tokens are burned and removed from the supply being converted into “shares”. These shares determine the size and length of the stake. To start staking, a user needs to set up a MetaMask wallet, upload some ETH there, go to Uniswap and buy WISE. The next step is to go to wisetoken.net and connect the wallet. After this, you are ready to start staking.
The platform offers a one-level direct referral program to its users. Anyone has a right to use a referral link to attract others’ attention to the project. The reward will be received when a referral reserves WISE tokens. The referrer will receive a 10% commission for all ETH sent through this link. Then the referrers will continue to receive profit from their referrals’ staking. Any person that has used a referral link to invest in WISE receives an extra 10% bonus in ETH, and 10% extra shares when staking.
The project representatives claim that this is the most decentralized financial product in the world. All users, including the founders and developers, have equal access to the contract's functionality. There are no administrative keys and no concept of a contract owner. All transactions including staking are performed from the user’s private wallet.
In September 2020, the Wise Foundation was audited by CoinFabrik, a blockchain development company. CoinFabrik came to the conclusion that although the project shows a certain level of complexity, the code is well written and security has been taken into account. No security problems were found.
The project has an active presence in social media. Its accounts can be found nearly on all the popular online platforms including Facebook, Telegram, Twitter, YouTube, Instagram, etc. All the channels, groups, and accounts make regular updates providing their followers with the most recent and relevant news about the project.
The WISE team isn’t anonymous and their names can be found on the official website. There are five team members mentioned in the list, as the core team members are Peter Girr, Aaron Hanson, and Vitally Marinchenko.
Peter Girr is the founder of the Wise Foundation. He lives in Los Angeles, the US, and has a military background. Aaron Hanson is the CTO. He has deep experience in software engineering and he has developed software for a wide array of industries. He lives in Chicago, the US. Vitally Marinchenko is a lead software engineer. He focuses on the most interesting and latest solutions in the blockchain space. He resides in Latvia.