Wonderland Experiences Closure Amidst Safety Concerns
- Wonderland community decided to give it a lasting closure, due to some security reasons, following its founder’s revelation.
- On 15th January, Wonderland climbed close to its peak, hitting its all-time high of $776.64 Million in Total Value Locked.
- Couple of days of governance participation generated a split decision, where a majority of token holders leaned towards “no.”
Wonderland Lost Amidst Sifu Saga Echoes
Following revelatory recognition of formerly shadowy QuadrigaCX co-founder Michael Patryn as Wonderland’s co-founder, a Decentralized Finance protocol, addressed on social media as @0xSifu – a successive community vote finalized upon indefinite closure of Wonderland for its unsettled safety concerns.
The saga was initiated when DeFi analyst Zachxbt doxxed Patryn identified to be Sifu, an entity with an infamous reputation inside virtual asset space, for alleged frauds and unethical conducts, most distinctly regarding $145 Million damages inflicted at a digital exchange based in Canada, QuadrigaCX, back in December in 2018.
After revelation of Sifu’s identity, a month before this week’s declaration, stablecoin protocol Abracadabra and Wonderland co-founder, Daniele Sestagalli constituted an essential question to members of a community that, should it be continued or shut down for facet of an investment DAO being a groundbreaking fresh organization? Sestagalli, expressed he would prefer the latter, to combat.
From a technical point of view, on 15th January, Wonderland climbed closer to its peak in Total Value Locked of $776.64 Million. However, as a kickback to exposure, TVL numbers rubble down the hill significantly to $78.57 Million on 25th January, tagging its 89.9% demise. As of this writing, numbers were somewhat recovering.
In pure Web3 style, a decision regarding winding down Wonderland and returning back treasury to its holders was left for community snapshot vote. A couple of days of governance participation generated a split decision, where vast majority of voters with 116,000 TIME leaned towards a no, and the rest 95,000 went for a yes.
Countering this, Sestagalli, the co-founder, made assessment that, his team’s responsibility was to approve token holders’ will. As vote was 50-50, there’s only one road to take, which is reimbursement or unwinding—validating this on Twitter.
Debates within a community are zealously on going in an endeavor to discover a considerate solution, Wonderland chronicle for everyone involved.
Proposals presently at the vanguard are an integration with Abracadabra or a transformation to a Decentralized Autonomous Organization framework with prominent transparency.
$321 Million “Teleported” from Wormhole
Wormhole’s – a DeFi bridging protocol – security was compromised where the attacker bagged $321 Million at the time of clash. This was the most significant attack this year, and second largest in DeFi history, just behind $610 Million hack on Poly Network back in August 2021.
After making an analysis, it was unveiled that attacker minted a total of 120,000 wrapped Ethereum from Solana, then made a moved to redeem 93,750 wETH for Ethereum worth $254 million. Rest of Wrapped ethereum got swapped for USDC and SOL.
