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,
This document is a general technical specification of the contract and its functionality.
Mainnet launch of the WISE contract is scheduled for October 8, 2020
The core purpose of the WISE token —
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
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.
The Wise Foundation is an unincorporated nonprofit association formed in
February 2020. The WISE contract and various
The Wise Foundation is dedicated to providing material through which anyone may understand the contract in depth. This is an important step towards fostering a high level of trust in the contract source code and its functionality, as not everyone has the means or will to digest the code.
The WISE contract source code will be made public on
our Github at
If you have any questions, or would like to discuss the project with the founders, developers, and the rest of the community, please join the official WISE Telegram group at https://t.me/WiseToken. We welcome all interested, respectful parties to our humble community. For various news releases related to WISE, please join the WiseTokenNews Telegram channel at https://t.me/WiseTokenNews.
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.
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
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
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.
The contract defines the token name as
"Wise Token", the
token symbol as
"WISE", and the number of decimals as
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
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.
The contract has no set token supply. The total initial supply minted by
users through the
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
The total supply of WISE in existence after the LT and Uniswap provision is subject to LT randomness, referral activity, and whether the foundation reimbursement ends up being a full 10% or less due to the hardcoded cap.
For example, if we assume the randomness averages out, assume half of all possible referrer bonuses are earned, and assume the foundation reimbursement cap causes it to be only 5% of the LT ETH, then the total initial supply would be:
baseLTSupply = 250,000,000 WISE
referrerBonuses = baseLTSupply * 5% = 12,500,000 WISE
totalLTSupply = baseLTSupply + referrerBonuses = 262,500,000 WISE
uniswapBatch = totalLTSupply * 95% = 249,375,000 WISE
totalInitialSupply = totalLTSupply + uniswapBatch = 511,875,000 WISE
Though extremely unlikely (virtually impossible), the absolute minimum possible total initial supply (all random days get their minimum values, no referral bonuses, and a low enough LT ETH total that makes the foundation reimbursement exactly 10%) would be:
baseLTSupply = 180,000,010 WISE
referrerBonuses = baseLTSupply * 0% = 0 WISE
totalLTSupply = baseLTSupply + referrerBonuses = 180,000,010 WISE
uniswapBatch = totalLTSupply * 90% = 162,000,009 WISE
totalInitialSupply = totalLTSupply + uniswapBatch = 342,000,019 WISE
Though equally unlikely (virtually impossible), the absolute maximum possible total initial supply (all random days get their maximum values, maximum referral bonuses, and a high LT ETH total that makes the foundation reimbursement approach 0%) would be:
baseLTSupply = 319,999,990 WISE
referrerBonuses = baseLTSupply * 10% = 31,999,999 WISE
totalLTSupply = baseLTSupply + referrerBonuses = 351,999,989 WISE
uniswapBatch = totalLTSupply * ~100% = 351,999,989 WISE
totalInitialSupply = totalLTSupply + uniswapBatch = 703,999,978 WISE
The total token supply will
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
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.
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.
Every LT day has an average of five million WISE available for reservation. Some of the days with randomly determined amounts have tight ranges only a few hundred thousand WISE in variance, and others are extremely variant, ranging from a single WISE to ten million WISE (technically 9,999,999 WISE, in order to preserve a strict average of five million per day). In this way, the LT Epoch provides various exciting options for users wishing to gamble with their ETH, and at various levels of risk/reward.
The following table outlines how many WISE will be available for user reservation on each day of the LT Epoch. Most days have exactly five million WISE available. The rest show two supply values: the minimum and maximum available that day. Each day is color coded for relative risk level, from none to high):
The WISE contract has a direct, one-level referral system that rewards both the referrer and referee when a user reserves WISE tokens in the LT. This referral system is an incentive to help increase the amount of ETH sent in, in turn funding a larger and more robust initial liquidity pool on Uniswap.
When a user makes a
Users may change the referral cookie stored in their browser at any time by clicking another referrer's link. If they do, their future token reservations would be associated with the new referrer. All past token reservations for that user remain as is; their previous referrer(s) do not lose credit for their existing referred token reservations.
When the LT Epoch ends, referrers that have referred enough ETH into the system, via their referred users' token reservations, can then mint an amount of bonus WISE.
The LT referrer bonus system has two tiers. Bonuses (paid in WISE) are based on how much total ETH their referral link brought in to the LT:
Note: all referral bonuses are paid in WISE. When the LT ends, an effective total LT WISE/ETH exchange rate is calculated by looking at the total amount of ETH sent in by all users, and the total amount of WISE made available for reservation. This ratio is then used to calculate the amount of WISE for each referral bonus.
When the final LT Epoch day ends, the Circulation Epoch begins. At this point, no further token reservations can be made.
Once the LT Epoch has ended, there is a public function in the contract that may be called by anyone to trigger the following one-time sequence of actions to start the Circulation Epoch:
The WISE contract's constructor function, executed when deploying the WISE contract, will make a call to the Uniswap V2 factory contract in order to create the Uniswap WISE/ETH exchange pair contract. This newly created exchange contract's address will be stored internally in the WISE contract.
This newly created Uniswap WISE/ETH exchange pair contract will simply lie dormant until the Circulation Epoch begins and the Uniswap provision transfer is executed, using the stored address. No minted WISE exists until that point, so no liquidity can be added until then.
As part of sending the Uniswap provision WISE and ETH to the exchange pair contract, a UniswapV2Router contract is used, which internally wraps the ETH into WETH (wrapped ETH), as is standard in Uniswap V2.
The UniswapV2Router contract returns an amount of UNI-V2 liquidity tokens
to the WISE contract as part of the Uniswap provision transaction. These
UNI-V2 liquidity tokens represent ownership of the liquidity pool the
WISE contract just sent in, and carry the sole power to withdraw that
liquidity. The WISE contract has no code or function allowing such
a liquidity withdrawal. However, as a further show of The Wise
Foundation's commitment to making WISE a totally trustless system, the
WISE contract will automatically and irrevocably destroy these UNI-V2
liquidity tokens upon receipt. This is done by transferring them to a
known “burn address”, such as
Once the Uniswap provision is complete, users are free to use Uniswap's front end to swap WISE into ETH, and vice-versa. They may also choose to deposit their own liquidity pools of WISE/ETH in order to earn fees from traders.
Prior to deploying the WISE contract, The Wise Foundation will determine its total expenses incurred in developing and launching WISE. These will include wages paid to developers, fees paid to lawyers, marketing spend, and the cost of the audit.
This expense total is represented in the contract source code as a hardcoded amount of 2,000 ETH.
When the LT Epoch closes and the Circulation Epoch begins, the total ETH sent into the LT gets divided into two buckets:
The 10% (or less) bucket of ETH is then transferred to an ethereum address owned by The Wise Foundation. The other bucket (90%+) is sent to Uniswap to create the first liquidity pool for WISE.
Once the LT Epoch has ended and the Circulation Epoch has begun, users
may now mint WISE tokens, either due to having
The minting of WISE is done on-demand by the user, in a single batch, through the front-end interface. The interface will show how many WISE the user can mint, broken down by reservation and/or referral bonus sources. Users may mint their WISE immediately, or wait as long as they like, without penalty.
Users will likely want to mint their WISE sooner rather than later
in order to take advantage of
The total circulating supply of WISE inflates at a constant rate of 4% per year. At the end of every day of the Circulation Epoch, the contract calculates how many new WISE will need to be minted for that day in order to achieve that rate of inflation.
totalWiseSupply = circulatingWise + stakedWise
dailyInflationRate = (1.04 ^ (1 / 365) - 1)
dailyInflationRate =~ 0.0001074597820279
newWiseToday = totalWiseSupply × dailyInflationRate
These new daily inflation WISE are not immediately minted. Instead, they
are earmarked for distribution to two parties: three quarters (3% inflation) to all
An example scenario:
On day X, suppose there are:
100,000,000 total circulating WISE
30,000,000 total staked WISE
10,000,000 total shares
The total new WISE that will be generated this day is then:
newWiseDayX = (100,000,000 + 30,000,000) × 0.0001074597820279
newWiseDayX = 13,969.771663627 WISE
This new WISE is split into two amounts:
three quarters for stake shares (i.e. 3% inflation)
one quarter for CM shares (i.e. 1% inflation)
Now, suppose user A has an active stake that is 2,000,000 shares.
On day X, this user's stake then gets some WISE earmarked for it:
userANewWiseDayX = newWiseDayX × (3/4) × stakeShares / totalShares
userANewWiseDayX = 13,969.771663627 × (3/4) × 2,000,000 / 10,000,000
userANewWiseDayX = 2,095.46574954405 WISE
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
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.
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
When a stake is opened, its WISE principal is burned and converted into shares. These shares represent the stake size and length as well as, indirectly, how early the stake was opened. The amount of shares a newly opened stake gets is determined by a global “share price” tracked in the WISE contract, as well as a percentage bonus based on the length of the stake. This share price only increases, hence staking earlier is better than later.
Stakes earn interest daily through the WISE supply inflation, as well as
Depending on the length of the stake, a bonus amount of shares will be
generated on top of the amount determined by the staked amount of WISE
and current share price. This bonus scales linearly from slightly above
0% for a one day stake, to 25% for a 5 year stake, and then to 30% for a
42 year stake. For instance, a stake with a length of 1.5 years will
1.5 * 5% = 7.5% bonus shares.
The share price starts at some predetermined value denominated in
WISE per share. Whenever any stake is closed, the contract
calculates a ratio of that stake's total return (principal + interest -
penalty) to its shares. If this ratio is greater than the current share
price, then the share price is immediately set to this new, increased
The share price can only increase over time, albeit fairly slowly. This ensures that earlier stakes get more shares than later stakes of the same amount of WISE. This share price increase mechanism also prevents users from being able to compound their interest with a sequence of smaller stakes in order to try and outperform a single long stake of the same size.
On the start of the fifteenth day of the
Users will have the ability to withdraw (scrape) any amount of earned interest from an Active stake (i.e. before the stake fully matures).
Users can choose exactly how much interest they wish to scrape, up to the maximum (all accrued, unscraped interest from all previous days). Scraping interest from an Active stake can be done multiple times over the course of the stake.
Scraping interest is possible starting on day 2 of the active stake. On day 1 (the first active day), the stake has not yet completed a full day of being active, and thus has not yet accrued any interest.
When a stake is closed, whether Active or Mature, the interest minted back to the user only includes interest that hasn't already been scraped.
Scraping interest will not affect the stake's principal, but will reduce the number of shares the stake has going forward. This effectively means that the stake will earn slightly less interest on the current and all future days of the stake than it otherwise would have. This share reduction also prevents users from being able to end up with more overall shares if they choose to immediately re-stake their scraped interest.
Scraping interest may cause a
First, calculate a possible new share price based on the stake's pseudo-return (principal plus all scraped interest thus far, including this scrape) divided by the stake's initial shares:
newSharePrice = (stakePrincipal + cumulativeScrapedInterest) / stakeInitialShares
Next, if this new share price is greater than the current global share price, update the global share price (which may have just increased due to this scrape):
if (newSharePrice > globalSharePrice) globalSharePrice = newSharePrice
Next, calculate an amount of shares to be removed from the stake, based on the interest being scraped now and the global share price:
stakeSharesToRemove = interestBeingScrapedNow / globalSharePrice
Finally, reduce the stake's current shares:
stakeCurrentShares = stakeCurrentShares - stakeSharesToRemove
A user may close a stake at any time. Depending on the stake's status (where the stake is in its lifecycle), different things will happen:
The penalty deducted from the principal (stakedWise) when closing an Active stake is as follows:
If the stake is one day long:
penaltyAmount = stakedWise × 0.1
If the stake is two or more days long:
penaltyAmount = stakedWise × (.1 + .8 × ((daysLeft - 1) / (stakedDays - 1)))
Thus, if you close an Active stake that was 100 days long on its final day before maturity, you get a 10% penalty applied to the principal. If you close the same stake on the first day of it being Active, you get a 90% penalty. The penalty scales linearly between those two extremes.
Any such WISE penalized from a stake's return is earmarked for distribution to all active stake shares that day. These penalty distributions are only realized by those stakes' shares when each of those stakes end.
Just as the WISE contract includes a referral program to incentivize
users to help bring more ETH into the
When a user opens a new stake, the front-end interface checks whether the
browser has a referral cookie, just as it does when making a
A referred stake generates 10% extra shares for the staker (beyond what it would have if not referred) as well an equal (but without the 10% bonus) amount of “critical mass shares” (a.k.a. “CM shares”) for the referrer. The system-wide pool of CM shares gets earmarked one quarter of the daily inflation WISE, but only for referrers that have qualified as CM referrers.
To qualify as a CM referrer, a user must have reached a total of $10,000 worth of referred stakes of 365+ days in length. If a user meets this condition, they are immediately and forever tagged as a CM referrer, and cannot ever lose that distinction, regardless of if their referees close all their stakes.
Another way to qualify as a CM referrer is to have referred 50 ETH of
token reservations in the
Calculating a new stake's USD value is only done once, when the stake is opened. The WISE/USD exchange rate used for this calculation will be determined by querying the Uniswap WISE/ETH and ETH/DAI exchange pair contracts' price oracle interfaces.
WISE has an additional way of staking that rewards liquidity providers for the WISE/ETH pair if certain conditions are met. If the liquidity percentage of WISE on Uniswap falls below 20%, then you may stake your LP tokens with the WISE contract and start earning interest (on top of the trading fees you already get).
This new money comes from the 3% inflation for stakers such that, the 3% for stakers slowly decreases and the 0% for LPs slowly increases. Once this triggers, it will become valuable for a certain amount of people to LP stake since there is now a new pot of money available for LPs to earn daily interest.
An additional perk for LP staking is that you may end your stake at any time and collect your LP tokens. When the Uniswap liquidity goes back above 30%, the rewards slowly start diminishing. The staking inflation will creep back up towards 3% and the LP inflation will creep back towards 0% until triggered again.
This is a safeguard in the system that will most likely not be triggered for years if at all. Users can still choose to add to liquidity themselves at any time in order to earn about 6% ROI from fees, but the additional incentive of shares interest doesn't trigger until needed.
The WISE contract conforms fully with the ERC-20 token standard, as proposed in EIP-20. This is essentially a set of functions that a token contract must implement in order to be an ERC-20 token.
This ERC-20 standard compliance means that applications, websites, exchanges, and smart contracts can very easily integrate with or be built on top of the WISE contract.
This section contains additional information about the WISE website.
ATTENTION: the WISE referral link and cookie system is ALREADY LIVE! You can start spreading your ref link today and building a base of referred users well before contract launch. So, do yourself a favor and start spreading your ref link everywhere!
Example: Get 10% Bonus WISE!
Anyone may use a referral link to direct users to the WISE website, this Teal Paper, the forthcoming official contract web interface, or any other page on the wisetoken.net domain or its subdomains, in order to potentially earn various referral bonus WISE from those users' contract interactions.
When a user clicks such a ref link, the wisetoken.net website stores a cookie on their browser, containing the referrer's eth address from the ref link. If that user later sends ETH to the LT or starts a stake at least one year in duration, the cookie will cause the contract to mark that LT reservation or stake as having been referred by that referrer.
If a user already has a referral cookie in their browser and clicks a different ref link, the cookie will be overwritten with the second ref link's ethereum address. Referrals are thus "last click wins".
Referral links containing invalid ethereum addresses will not work; the website will not create (or overwrite) the cookie.
The Wise Foundation sincerely hopes that our efforts to provide the general public with a trustless, decentralized, interest-bearing instrument will bear fruit, and that WISE will be a great success. But, we can't achieve these goals without the help of the community around us.
The WISE project was started not with the intention to profit, but from the desire to create something incredibly useful for the world. We hope this document has made our vision and intentions clear.
We welcome any questions, comments, or criticism you may have. We also have some need for various types of contributors to the project.
Please join us in the official WISE Telegram group at t.me/WiseToken and the official WISE Discord server to discuss the WISE project with the founders, developers, supporters, critics, and the rest of the community.
The Wise Foundation would like to sincerely thank the following people and groups that have been and continue to be instrumental in making WISE a reality and a success:
The web version of this paper is hosted at https://wisetoken.net/teal/. Its source code is maintained at https://github.com/wise-foundation/wise-website/tree/master/html/teal.
require()function calls should return a short but descriptive error message, always prefixed with "WISE: ".
The Wise Foundation has obtained a paid, professional audit of the WISE contract Solidity source code from CoinFabrik, a reputable auditing firm. The full audit report is included below.
TL;DR - The auditors' conclusion was, “We found that although the project shows a certain complexity, the code [is] well written and security has been taken into account. The documentation provided was also very helpful and relates correctly to what is implemented in the contracts. No security issues were found and the only non-security issue was quickly fixed by the team.”
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Adams, H., Zinsmeister, N., Robinson, D. (2020, March). Uniswap v2 core. https://uniswap.org/whitepaper.pdf
Knightly Crypto. (2020, March). Wise token: Trustless and easy interest-bearing crypto. https://wisetoken.net/wise-token-white-paper.pdf
Mushegian, N., Brockman, D., Brockman, M. (2018, February 6). Reference implementation of the decentralized DAI stablecoin issuance system. https://makerdao.com/purple/
Oraclize. (n.d.). A scalable architecture for on-demand, untrusted delivery of entropy. Retrieved March 22, 2020, from https://provable.xyz/papers/random_datasource-rev1.pdf.
Provable Things. (n.d.). Security deep dive. Provable docs. Retrieved March 22, 2020, from https://docs.provable.xyz/#security-deep-dive
Vogelsteller, F., & Buterin, V. (2015, November). EIP-20: ERC-20 token standard. https://github.com/ethereum/EIPs/blob/master/EIPS/eip-20.md
Wood, G. (2019, October 20). Ethereum: A secure decentralized generalised transaction ledger: Byzantium version 7e819ec. https://ethereum.github.io/yellowpaper/paper.pdf
Zhang, Y., Chen, X., & Park, D. (2018, October). Formal specification of constant product (x × y = k) market maker model and implementation. https://github.com/runtimeverification/verified-smart-contracts/blob/uniswap/uniswap/x-y-k.pdf