Wise Liquidity 2.0

The Original: Liquidity 1.0

The Wise Liquidity 1.0 model was a proof-of-concept fair-launch protocol designed to create the first Ether-backed token. Of the 57,900 Ether raised, more than 28,000 Ether is provably and immutably locked in the WISE/ETH liquidity pair on Univswap, thereby creating a mathematical price floor, priced in Ether. The 28,000 Ether is mathematically calculated from what would remain in the WISE/ETH liquidity pair, should all WISE (staked and unstaked) be sold back into the liquidity pair.

  1. Each Uniswap transaction fee that is generated from buys and sells of WISE will increase the relative value relationship of Ether. Currently, these transaction fees comprise a 5% annual deflation to the liquidity pair, significant considering the liquidity pool is currently over twice the value of the WISE token market cap.

The Upgrade: Liquidity 2.0

The purpose of Liquidity 2.0 is a more efficient use of capital from a launch event, while maintaining security and fairness. Liquidity 2.0 allows 50% of the funds raised from a launch event to be removed without changing the amount of liquidity that would have been added to the DEX in the original model. The removed funds are used to create a large revenue-generating treasury that generates airdrops for Wise token stakers.

How does the OWL DAO Work?

The OWL DAO will keep each ecosystem’s funds separate (WISE, WISB, WISC projects) through the use of multiple smart contracts on each chain, although the UI will include all of the treasuries together to show the full scope of the Wise Ecosystem. Before the final stage of the OWL DAO is completed, each ecosystem’s treasury is controlled by the WiseSoft, LLC team via a multisig vault; although, future launches and revenue-generating protocols will send treasury funds directly to a smart contract once the governance contracts for the DAO is live. Note that Liquidity 2.0 does not include a start-up fee (2000 Ether) as Liquidity 1.0 did.

Conclusion

Liquidity 2:0 is a significant and game-changing tokenomics upgrade for the Wise Ecosystem that facilitates the creation of a DAO-owned treasury, which ultimately increases yield for stakers in the form of weekly airdrops as well as providing working capital for ongoing ecosystem development.

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Devin Marty

Devin Marty

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I am currently the Director of Strategy at WiseSoft, LLC – the company behind the Wise Token, the first fully decentralized DeFi ecosystem.