Is this wise?

in #defi2 years ago (edited)

Happy new year everyone!

Recently this token kinda surprised me with its simple and seemingly effective setup as a staking project. It's built on the Ethereum network, and that's actually the only problem I have with it for reasons you'll find in some of my older posts. Regardless, I ended up taking a position in it because of the following factors:-

  • Close to 100% of the ~58,000 ethers contributed during the 50-day presale auction was deployed as part of a massive ownerless liquidity pool on Uniswap. Nobody can ever remove the pool. This gives Wise a kind of price floor, being asset-backed in a decentralized fashion. It just launched yesterday at the average auction price with about $10 million in ethers swapping-in for Wise in the first minute. The liquidity of the Wise-Eth pair now sits at ~$91,000,000 at the time of writing: https://info.uniswap.org/pair/0x21b8065d10f73EE2e260e5B47D3344d3Ced7596E

  • Nobody was given free tokens or special privileges, including the founders. Everyone who wanted Wise must put their own money in it.

  • The Wise team took the path of "governance is a bug", so it's actually an already completed project. There will be no voting of any kind and no changes can ever be made. Of course, the project can be expanded by working on the layer-2 stuff like insurance, lending, and such. Given its simplistic nature, I think this is the right move. But this is also the reason why Ethereum is not the best choice imo, because you can never know all the consequences of code beforehand. Being unable to change when an unexpected bug happens can be catastrophic. But again, it's a fairly simple set of contracts with limited variables, so it's a risk I'm willing to take.

  • There's a built-in one-level referral system that rewards referrers whenever someone stakes more than 365 days. This in my mind translates to "super efficient salesforce on the blockchain". You can self-refer, sure, but you can only do it with a large capital. Even if you have that large capital, you're just paying yourself with your own money anyway. There's no way to abuse it so far, and it remains to be a "perpetual" opportunity for content creators or whoever who can sell.

  • Besides adoption, a big chunk, if not the entire 4% annual global supply inflation for staking interests and referral rewards can potentially be offset by the trading fees generated by the massive ownerless pool on Uniswap. It's not nearly as good as a "risk-free interest without inflation" setup like Tau-Chain's Agoras, but imo it's better than most inflationary projects in this space.

  • There is no "bigger is better" staking advantage, only "longer is better".

Overall, I think it's a pretty cool simple project with well thought out token economics. However it's predicated on the machinations of Ethereum and the value of ether along with the ridiculous transaction fees.

Note: This is just a random sideplay while I'm waiting for $AGRS / Tau.net.

Disclaimer: not financial advice.

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And the question... what is the APY?
Happy new year :)

1000% lol, but seriously imo it's a meaningless number if its not sustainable.

Dude, I'm super glad you're back, I thought you went MIA for good. I was reminiscing on the good old days when I bought some shady coins because you were into them but they went the way of the dodo :P. What do you think 2021 will bring to Hive if anything? oh and Happy New Year ! :)

Lol which ones? I didn't talk about any crypto projects after getting into Tauchain/Agoras. No idea about Hive, I haven't been active for some time. I think it can learn from Wise though especially the part about the ownerless pool and referral system.

one of them was substratum now called IOST, I lost all my coins because exodus delisted them :)) the other one I can't remember it's name ( even for this one I had to search a fair bit to find out it's name )

Ah Substratum, sold it off at some point, didnt know they're called IOST now. But are they really? Doesn't look like it.. anyway I think Binance is currently funding a similar type of project.

the logo confused me, they have very similar logos and I though they rebranded or something

Always looking for new projects to read up on, thanks. Happy new year!

woah you're still around lol, good 2 see u

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Will look into this project. Thanks for the link

Eth just pumped hard I was too late. Was wanting to get in when at 650 OR so but I'll wait on the inevitable btc correlation dip.

Someday something will actually be an ETH killer but until then it's not a terrible move to invest in it.

More posts please! 🖖