Wise is for DeFi what gold is for conventional markets
defi best staking

Wise is for DeFi what gold is for conventional markets

By Andrei D | Blockchain Growth | 4 May 2021


It all happened by complete coincidence that I came across Wise. To be precise, I shrugged off DeFi back at its grassroots, simply because staking was all about scams back in the day. To my surprise though, it has grown to be a $60 billion industry by mid 2021 and today, it is thriving like never before. 

Wisesoft is of course part of it and their WISE and WISB tokens became just the perfect trigger for me to get reintroduced to DeFi. Just so you know, I like to write about everything that I want to remember. For this reason, here is my short snapshot of Wise and why it must be one of the safest ways to stake, having your cash backed by ETH and now, the BNB. I say now because their new BNB pool is getting filled as you scroll deeper into this article. 

Wise at glance

First and foremost, Wise is fully backed by an ETH and a BNB pool and this is a deal breaker for me. We finally have a token that is not backed by the same token from a different ‘secure’ pool, but an asset that is critical to the crypto industry. What are the chances for ETH to lose all of its value? If anything, it reached the new historical price level a few days ago. Will BNB go to the rock bottom as if it is skydiver with no parachute? Not with its integration with Binance Smart Chain and depleting nature.

Furthermore, the way these pools are setup, you practically become untouchable in situations if all other holders of Wise, for some unknown reason, decide to sell out. Wisesoft states that even if such black swan event takes place, there will still be around 20k+ ETH left in the pool. This logic is made possible thanks to the math behind staking liquidity pools and DEXs, first introduced by Uniswap if I am not mistaken. 

Then comes the floating but protected price floor. It draws from the above mentioned pool characteristics and being backed by real value-carrying assets. In layman’s terms, the ETH and from now on BNB locked in the two Wise pools act as protection to the price of the Wise token. And this is another stellar benefit that hits home if you are looking for a safe place to store value

Best staking?

A DeFi won’t be a DeFi without token generation or staking, as industry’ people like to call it. If you just so happen not to be fully acquainted with what DeFi is, think of it as a blockchain’s answer to conventional financial markets. DeFi lets you lend and borrow and get interest whilst you are at it. Keeping this in mind, over 85% of all Wise tokens are staked by its community. What does it tell us? It shouts confidence that the community has towards the token and the team behind it. As for the team, they decided not to reward themselves with any tokens whatsoever and instead purchased their tokens just like any other community member. 

Simply put, you do not just park your cash safely with Wise, but earn interest in its tokens that grow in value based on the demand and an ever increasing ETH and BNB price. 

How to board the Wise train?

The team is currently in the middle of a BNB pool raise that will be automatically locked by the smart contract as soon as the 200m pool ceiling is reached. This then is your perfect chance to snatch the token before it gets placed on Uniswap. As you can imagine, the rest is already history. 

Please note that I am not trying to impose a purchase decision here and at the end of the day the decision is yours. I am simply impressed by how intelligent some DeFi projects have grown to be.   

 


Andrei D
Andrei D

Contributing writer on everything Blockchain, Finance, Media, Advertising and Automotive


Blockchain Growth
Blockchain Growth

Everything blockchain, everything crypto

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