Wonderland founder Dani Sesta aims for DeFi comeback with new leveraged stablecoin project

Wonderland founder Daniele Sestagalli says he is launching a new DeFi project with leveraged stablecoin yield farming for the not-so-rich in crypto.

Sestagalli, who has been criticized for entrusting Wonderland’s finances to ex-convict Michael Patryn, said on Twitter that the new pool, or cauldron, will allow retail DeFi traders to earn high yields from their stablecoins.

“The new focus of my development is a strong alignment with the core values ​​that brought me here: accessible finance for all,” Sestagalli said in a bombastic April 9 tweet.

He promised a “new era” in stablecoin yield farming with leverage of up to 40x. Leverage allows users to take a much larger position in a given cryptocurrency without having to pay the full price.

Sestagalli said the first such boiler will be with the Ethereum-based protocol Yearn Finance. Users could earn over 80% interest or APY on DAI stablecoin deposits, he revealed, without elaborating on the source of the returns.

The software developer also chided wealthy crypto investors, often dubbed “whales,” for crowding out retail investors from high-paying protocols.

“The key component is enabling a smaller available capital to earn a much larger one: the introduction of the brand new kettles with limited capacity per address and a whopping 40x leverage that generates the best yields for little frogs,” he added added.

1/ A new era of leveraged stablecoin yield farming is about to begin. We’ve been working hard over the last few weeks while everyone was thinking ‘Dani is over’, ‘Your projects are dead’ to deliver something that is truly game-changing for the frog

– Daniele never asks for DM (@danielesesta) April 9, 2022

Sesta wants to regain investor confidence

Sestagalli leads a community of decentralized finance (DeFi) projects that he co-founded. This community, which includes Wonderland (TIME), Abracadabra (SPELL), and Popsicle Finance (ICE), is known as “Frog Nation” and the participants call themselves “Frogs”.

In the spirit of the frog, Sestagalli, aka Dani Sesta, is now attempting to make his way back into DeFi after suffering what appeared to be severe reputational damage with the Michael Patryn (0xSifu) scandal in February.

The DeFi founder learned of Patryn’s checkered past but remained silent about it for a month, allowing the ex-convict to continue in his role as Wonderland’s treasurer. Sesta only confessed after the matter was brought to light by pseudonymous crypto sniffer dog Zachxbt.

When the news broke, Wonderland’s TIME token crashed along with all other tokens associated with the developer. Many people were liquidated, and Sesta promised a refund. He never did.

Dmitry Mikhailov, CTO at Gaming Metaverse Farcana, told BeInCrypto that Sestagalli would likely find it difficult to regain the goodwill he has built throughout 2021.

“He [Sestagalli] must hope there is an appetite for the kind of ‘epee’ activities he has spearheaded again to succeed with his latest project,” Mikhailov said.

“Until the market shows strength across the board, it’s difficult to see his new venture gaining as much traction as Wonderland and Abracadabra.”

New DeFi project to stabilize the MIM peg

Dani Sesta hopes his new stablecoin yield farming project will bring about “major new dynamic rate changes” to help stabilize Abracadabra-based stablecoin Magic Internet Money (MIM)’s US dollar peg.

He also expects that the project will “generate much more fees for the protocol to create a leap towards sustained growth, strong attachment and global accessibility scaling solution that can be used by anyone, anywhere.”

Sesta continued: “This new cauldron will be launched with 0% initial fees and 0% interest rate. Prepare your barns, you are about to see yields from this planet.”

Curve Finance, the DeFi protocol known for its cheap stablecoin trading, responded with “OMG” to Sesta’s tweet, somewhat summing up the prevailing reaction of shock and disbelief to the developer’s new proposal.

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