Wonderland co-founder abandons troubled DeFi project

The co-founder ofHe besieged the decentralized finance project Wonderland is preparing to throw in the towel after a deeply divided community vote.

On January 30th Wonderland co-founder Daniele Sestagalli tweeted that the Avalanche-based reserve currency experiment is coming to an end. He added that the division in the community “means we failed”.

The decision to save or liquidate the project came after Sestagalli asked his longtime partner and Wonderland chief financial officer, Michael Patryn (he calls himself “0xSifu”), He resigned late last week.

Wonderland co-founder abandons troubled DeFi project
Wonderland co-founder abandons troubled DeFi project

Patryn, who has changed his name several times, was sensationally revealed on Jan. 27 as the co-founder of defunct Canadian cryptocurrency exchange QuadrigaCX. He has also previously been convicted of credit card fraud and pleaded guilty to various related offenses in the early 2000s.

There have been several active votes on the Wonderland Governance forum, but the vote to liquidate the project and return the treasury to its owners had 55% of the vote for rescue and 45% for disband at the time of writing. Sestagalli said the split brought only one way forward:

β€œThe duty of the team is to implement the will of the token holders. With the voting so close to 50/50 there is only one way forward and that is redemption/cashout.”

He added that he is working with the team on a new proposal. But still, Proponents of keeping the project noted that the community was not divided. They suggested splitting the token allocation, which raised other concerns in the community.

Various alternative proposals were put forward to save the project from bankruptcy. Below is another ongoing discussion of a possible merger with Wonderland and Abracadabra.a DeFi lending protocol and yield strategy generator.

Also on 31.01. Community members known as “Frogs” released a lengthy proposal for Wonderland 2.0, proposing a transition from the existing protocol and treasury to a new DAO structure with a more transparent system of governance.

The DeFi confusion has spread throughout the ecosystem, with other networks like Terra also affected.. The close ties between Wonderland and Abracadabra’s MIM (Magic Internet Money) tokens have also impacted the Terra ecosystem as the MIM is used for yield farming with Terra’s stablecoin UST.

The stablecoin recently fell below its benchmark due to Wonderland concerns, and this had a knock-on effect on LUNA.used for its price stabilization mechanism.

LUNA prices are down 13% in the last 24 hours, since investors have liquidated. In the meantime, Wonderland’s original token TIME has plunged nearly 60% since the debacle began last week and is now 96% down from its Nov. 7 all-time high of just over $10,000.

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