DeFi: value of anonymity vs/ inherent risks vs/ adequate amount of due diligence.
The community of the DeFi protocol, Wonderland, has removed its treasury manager, who goes by the name Sifu. The current treasury balance of Wonderland stands at over $735 million. It was revealed that Sifu is actually a convicted co-founder of the failed Canadian crypto exchange QuadrigaCX. Sifu was convicted for financial crimes and spent time in jail.
Wonderland's token, TIME, is a "stablecoin" in the DeFi ecosystem that is backed by a treasury of funds locked in by users. So, trust is at the core of the project.
Question: how to establish trust with no adequate level of due diligence conducted on the management team?
According to most recent news, the Wonderland DeFi Protocol announced its closure after the revelation. Daniele Sestagalli, Wonderland’s co-founder, said that he was determined to find a new home for those who still consider his vision and the Wonderland experiment in general.