Introduction

WISE Token, hereinafter referred to as WISE, is an ERC-20 compliant smart contract designed for deployment on the Ethereum blockchain. WISE is a decentralized, fairly launched, automatically liquid, trustlessly exchangeable, interest-bearing, bond-like token.

WISE Token Purpose

The core purpose of the WISE token — staking — is similar to both bonds and CDs (certificates of deposit): rewarding the holder with earned interest in exchange for locking up their funds for a period of time. WISE incorporates some of the features from both of these traditional instruments but improves greatly upon them.

CDs tend to be lower risk, lower return, and only pay out interest on their maturity date.

Bonds tend to be somewhat higher risk, higher return, and pay out interest regularly on a set schedule (typically every six months).

WISE is most similar to a bond, in that it earns relatively high interest, but allows users to withdraw it whenever they want.

WISE is superior to bonds and CDs in every way:

• WISE gives the staker complete flexibility in choosing exactly when to withdraw their interest during the life of the stake. You can withdraw interest daily, irregularly, wait until maturity, or whatever you like!

• WISE stakes have higher return, much lower risk (due to being decentralized and trustless), and far higher flexibility than both bonds and CDs. No more trusting banks and governments to stay solvent and not change their rules. No more worrying that a bond issuer may default on you.

• WISE is pure, immutable code.

Motivations and Principles

Trusting your money in the custody of other humans is inherently risky. This glaring flaw in traditional financial instruments is a primary motivation for developing WISE. The WISE contract aims to ensure that a user can always be in full custody and control of their WISE tokens, even during the course of various economic activities.

The initial minting of WISE, earning referral bonuses, opening and closing stakes, receiving interest, and even selling WISE for ETH or other tokens can all be done end-to-end without the user's WISE tokens ever being under the control of another person or system. Compare this to the world of banks you can('t) trust and traditional money managers that (don't) have your best interests at heart.

One very important aspect of owning cryptocurrencies is having a place to safely, easily, and quickly trade them when the need arises. We believe Uniswap, a popular and highly regarded decentralized exchange (DEX) smart contract on Ethereum, is such a place. Following the fifty day Liquidity Transformer Epoch, the WISE contract will automatically, trustlessly, and irrevocably bootstrap its own initial liquidity pool on Uniswap. At least 90% of all ETH sent by users to the WISE contract during the LT Epoch will in turn be automatically transferred to Uniswap by the WISE contract, along with an amount of minted WISE in equal value.

In exchange for and simultaneous to this liquidity pool deposit, Uniswap transfers to the WISE contract an appropriate amount of UNI liquidity tokens, which carry the sole power to later withdraw that liquidity pool. The WISE contract will automatically, immediately, and provably destroy these UNI tokens by transferring them to a known burn address. In doing so, the WISE contract ensures that this initial ETH/WISE liquidity pool cannot be withdrawn from Uniswap by any person, party, contract, or entity — for all eternity.

The WISE contract also allows users to earn interest on WISE token time deposits called stakes, which are most similar to bonds, but more flexible. A stake earns interest like a bond, but with the added feature of allowing interest withdrawals at any time during the life of the stake; not something bonds allow. These bond-like interest-bearing stakes in WISE are always fully in the custody of the user and their wallet, never held, influenced, or able to be confiscated by any third party.

WISE Contract Functionality

The WISE contract has several key properties and core functions, outlined in detail in the following sections. Some of the important mathematical calculations and data structures are also presented here. Various example scenarios of user and multi-user activity and contract state evolution are illustrated where appropriate.

General Properties

The contract defines the token name as "Wise Token", the token symbol as "WISE", and the number of decimals as 18.

The base unit of WISE is called YODA. One WISE is composed of one quintillion (1 × 1018) YODA.

Time is tracked by the contract in whole day increments, beginning at Day 0, which starts at the midnight UTC preceding the contract deployment. The individual days used for the LT Epoch will be higher day numbers in the code, rather than literally being day numbers 1–50.

The contract has no special functionality granted to the deploying account, no administrative keys, and no concept of a contract owner. All users, including the founders and developers, have precisely equal access to the contract's functionality.

The contract, once deployed, is immutable. No proxy or delegate contracts are involved.

Token Supply

The contract has no set token supply. The total initial supply minted by users through the Liquidity Transformer will fall within a defined range, determined partially by confined randomness, and partially by referral bonuses.

The 50 day Liquidity Transformer has an average of five million WISE available each day, though some days have randomness involved. This means the total supply available in the LT will likely be around 250 million WISE. Due to referrer bonuses, there could be up to an additional 10% minted on top of that (i.e. up to 25 million more).

This total supply is then matched by a minted batch that is then sent permanently to Uniswap. The amount of WISE sent to Uniswap will be up to 10% less than what was mintable through the LT and referral bonuses, due to the team reimbursement ETH. Regardless, the ratio of WISE/ETH sent to Uniswap will match exactly the ratio of mintable LT WISE (including referral bonus WISE) to LT ETH. This ensures that the initial Uniswap price matches the overall price of the LT.

The total supply of WISE in existence after the LT and Uniswap provision is subject to LT randomness, referral activity, and whether the team reimbursement ends up being a full 10% or less due to the hardcoded cap.

Liquidity Transformer Epoch

The launch of the WISE contract will kick off an initial 50 day phase during which users may send ETH (or any ERC-20 token traded on Uniswap V2) to the contract in order to reserve WISE tokens. The tokens reserved can be minted by the users immediately following the end of the LT Epoch, i.e. the start of day 51.

Each day of the LT Epoch will have an amount of WISE tokens that are reservable by all those who deposit ETH to that day. Most days will have exactly five million WISE available, but the other days will have their available WISE amount randomly set within a predefined range. These random amounts will be determined by the contract shortly after the end of each random day, by leveraging the Provable (formerly called “Oraclize”) smart contract's Random Datasource interface. The generated randomness is delivered on-chain in a trustless and provably cryptographically secure manner. For more detailed information about Provable, please read their random datasource white paper and their security deep dive.

Each day's available WISE ends up getting split amongst the users who deposited ETH to that day, in direct proportion. In other words, a user that made a reservation on a particular LT day will later be able to mint the fraction of that day's available WISE that equals the fraction of the day's total ETH they personally sent in.

Token Reservation

On any given day of the LT Epoch, users may choose to send ETH (or any ERC-20 token traded on Uniswap V2) to the contract and assign it to any of the LT Epoch days that have not yet concluded. We call this action a “token reservation”.

For example, during day 12, users may send and assign ETH to any of the days 12–50, but not to days 1–11, since those days have already concluded.

Each token reservation is assigned to a single day, but users may make as many such reservations as they wish, to as many different days as they wish.

The WISE contract front end will also include the ability for a user to spread a single reservation amount of ETH (or ERC-20) evenly across all remaining LT days. This “dollar cost averaging” feature saves gas for the user who wishes to reserve an equal part of each LT day.

Reservations can be made with ETH, but also with any ERC-20 token that's traded on Uniswap V2. This is done via direct integration with Uniswap, which swaps the ERC-20 for ETH as part of the reservation transaction. This is functionally the same as the users themselves swapping the ERC-20 for ETH on Uniswap, and then later sending the ETH to the WISE contract for a token reservation. The benefit of using the WISE reservation interface to do this is that it saves the user some gas fees and time.

Each single token reservation must be of a minimum ETH amount, to make spam attacks cost-prohibitive. The specific minimum amount will be finalized at a later date, closer to launch. This is because the price of ETH may change significantly between the time of this writing and the contract launch. The minimum will likely be in the neighborhood of $10 worth of ETH.

The contract will provide public interfaces for viewing the total amount of ETH currently assigned to each LT Epoch day across all users, as well as the total WISE available for each day (where that supply has been determined, in the case of random days). For days where the supply has not yet been finalized, the min/max range will also be retrievable from the contract.

Staking

The WISE contract allows users to stake their WISE, locking it up for a period of days, in order to earn interest. This is the primary function of the contract during the Circulation Epoch.

Users may open as many stakes as they like. After a stake reaches full maturity, the user may close it at any time to receive their full principal, plus interest, without penalty.

Unlike some other stakeable tokens, WISE never penalizes a mature stake, no matter how late it is eventually closed. This allows users much more flexibility, especially for taxable income purposes. Also, should a user pass away before being able to close their stakes in a timely fashion, the WISE contract thus remains in compliance with estate laws of various jurisdictions that make it illegal to penalize the assets of a deceased person.

Opening Stakes

When a user opens a new stake, they choose an amount of WISE to stake, and a stake length in days. The minimum stake amount is 0.000000000001 WISE (1000000 YODA). The minimum stake length is one day, and the maximum stake length is 15,330 days (just under 42 years).

Once a stake is opened, it is in “Pending” status. This means that the stake won't technically begin until the following day. A user may close a stake in Pending status, receiving back the stake's principal, without penalty or interest.

Pending stakes become “Active” status once the next day begins. At this point, closing the stake before it reaches “Mature” status will incur a penalty.

When a stake is opened, the WISE tokens staked are actually burned by the contract and converted into “shares”. These shares exist for the life of the stake. Once the stake is closed, the shares are destroyed, and WISE is minted back to the user (along with any interest added and penalties deducted.

Tracking Wise