Wonderland co-founder throws in the towel on embattled DeFi project
The co-founder of beleaguered Wonderland decentralized finance project is preparing to pull the plug following a deeply divided community vote.
On January 30, Wonderland co-founder Daniele Sestagalli tweeted that the Avalanche-based reserve currency experiment was coming to an end. He added that the divided community “means we have failed”.
The vote to save or end the project came after Sestagalli asked former partner and Wonderland Treasury chief Michael Patryn (who goes by the alias ‘0xSifu’) to step down late last week. .
Patryn, who has changed his name several times, was sensationally revealed on January 27 as the co-founder of former Canadian crypto exchange QuadrigaCX. He was also convicted of credit card fraud and pleaded guilty to several related offenses in the early 2000s.
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The Wonderland experience is coming to an end. It is clear from the vote that the community is divided. The core and heart of Wonderland is always the community. If we can’t agree whether to continue or not, it means we failed.— Daniele never asks the DM (@danielesta) January 30, 2022
There were several active votes on the Wonderland governance forum, however, the vote to end the project and return the treasure to its holders had 55% votes to save it and 45% in favor of disbanding at the time of the writing. Sestagalli said the split resulted in a single path forward:
“The duty of the team is to enact the will of the token holders. As the vote is so close to 50/50, there is only one way forward, and that is to refund/unzip.
He added that he was working with the team on a new proposal. However, supporters of keeping the project pointed out that the community was not divided. They suggested that the token allocation was split, which raised further concerns in the community.
I’m willing to listen to what you have in mind so please don’t take this as FUD or hate I just want to correct one point here
The community is not split 50-50. Token allocation is. The community as individuals overwhelmingly voted No and against all odds we won pic.twitter.com/nBS3cCRe39
— 0x von Bismarck (@0xVonBismarck) January 30, 2022
A number of alternative proposals have been put forward to prevent the project from sinking. These include another ongoing discussion of a potential merger with Wonderland and Abracadabra, a DeFi lending protocol, and a yield strategy generator.
Additionally, on January 31, a lengthy proposal for Wonderland 2.0 was posted by members of the community known as “Frogs” suggesting a transition from the existing protocol and treasury to a new DAO structure with a governance system. more transparent.
Related: Daniele Sestagalli discusses the future of Wonderland after QuadrigaCX co-founder dox
The DeFi imbroglio has had ripple effects across the ecosystem, with other networks such as Terra also feeling the impacts. The close ties between Wonderland and Abracadabra’s MIM (Magic Internet Money) token has also impacted Terra’s ecosystem as MIM is used for yield farming with the Terra stablecoin, UST.
The stablecoin recently fell below its peg due to Wonderland concerns, which had a ripple effect on LUNA, which is used for its price stabilization mechanism.
LUNA prices are currently down 13% in the past 24 hours as investors sold off. Meanwhile, Wonderland’s native TIME token has fallen nearly 60% since the debacle began last week and is now languishing 96% from its Nov. 7 all-time high of just over $10,000. .
