Disgraced Wonderland founder Daniele Sestagalli announced his return to DeFi in a rather controversial way: “I’m back. And I don’t give a damn if you like it or not.”
Sestagalli quit working in the decentralized finance (DeFi) sector in January following the Michael Patryn (0xSifu) scandal. He declared at the time that the “Wonderland experiment is coming to an end”.
“Now it’s time for magic to happen,” Sestagalli declared on Twitter during his comeback. The post intentionally touted Wonderland’s native token, TIME, and Abracadabra-based stablecoin Magic Internet Money (MIM), both his creations.
Sestagalli also said Wonderland was “back with more tech and less talking,” but didn’t give details. He teased his 305,000 Twitter followers with a short video that takes Wonderland’s paean to another notch.
“Wonder, Wonderland. You have forgotten yourself, brother, and with that you have forgotten time. You have grown enormously. remember who you are You are now a ‘frog’ and perhaps the true explorer trying to rebuild the one true empire.
fall from grace
Wonderland is “a decentralized reserve currency protocol” built on top of the Avalanche blockchain network. It was built by Sestagalli, who along with Patryn launched the protocol as a fork of Olympus DAO in late 2021.
At its peak, the protocol managed a total of around $1 billion in assets, but that’s currently down to just $6.3 million, according to DefiLlama data.
This is after Sestagalli found out about Patryn’s criminal past and decided to keep quiet about it for a month so the ex-convict could continue in his role as Wonderland’s treasurer. The DeFi founder only confessed after pseudonymous crypto sniffer dog Zachxbt broke the matter.
When the news broke, the TIME token crashed along with all other tokens associated with the developer. Many people were liquidated, and Sestagalli, aka Dani Sesta, promised a refund. He never did.
Sesta’s new retail DeFi project
While Sesta’s last Twitter post didn’t say much about his new ventures, in April he announced that he was launching a decentralized finance yield farming project targeting those with little capital.
The new pool will allow retail DeFi traders to earn high returns from their stablecoins, he said in the filing, adding:
“The new focus of my development is a strong alignment with the core values that brought me here: accessible to all.”
He promised a “new era” in stablecoin yield farming with leverage 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 pool will be the Ethereum-based Yearn Finance protocol. Users could earn over 80% interest or APY on DAI stablecoin deposits, he revealed, without elaborating on the source of the returns.
He hopes his new project will produce “major new dynamic rate changes” to help stabilize MIM’s US dollar peg.
Sesta also expects that the project will “generate much more fees for the protocol to create a leap towards sustainable growth, strong engagement and global accessibility scaling solution that can be used by anyone, anywhere.”
The mockery continues
Dani Sesta leads a community of DeFi projects that he co-founded. This community, which includes Wonderland, Abracadabra and Popsicle Finance, is known as “Frog Nation” and the participants call themselves “Frogs”.
But not everyone is excited about his return.
“You should work with Mr. Kwon,” scoffed early Bitcoin investor Marc Pelosi. He was referring to Do Kwon, the founder of Terra, the $60 billion blockchain often criticized as a Ponzi scheme that later collapsed in May.
“lol let’s stir up the crypto community again! this is fantastic! Watch your money go to ZERO like MAGIC!” said another Twitter user going by the name “beartronix9”.
And another demanded, “Seriously, when will I get my liquidation reimbursed under cover?”
Wonderland’s TIME token was down 2.9% at $16.07 at press time. According to CoinGecko, the asset is down 99.8% from its all-time high of $10,063 hit on Nov. 7, 2021.
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