[DAO Discussion] Risk Officer - InteriorCrocodileAlligator

1. Introduction / Experience

  • Have been invested in Wonderland less than a month from inception.
  • Aside from Wonderland, I started with Defi using Idex in 2018 and have interacted with most of the large chains with a good understanding of all the large protocols on each
  • Continually keep up to date with up and coming protocols as well as updates regarding current protocols.

2. Important risks to consider:

  • Recent OTC agreement of 500k for UwU tokens. The deal was done which included most of them being locked tokens. This was not done in accordance with governance from WIP 14 where allocation into locked tokens requires DAO approval.
  • The management of the LP is not as expected with sold wMemo being taken out of circulation/burned.
  • Overallocation into certain protocols/umbrella of unsecured loans
    -Allocation into new/unaudited protocols. High risk like that should only be done during investment in seed stage.
    -More clarity needed around Sifu regarding fees charged for services done for DAO. I have observed various fees for bridging/swapping of tokens. Recommend that it is posted so that we have no more issues regarding handshake deals.
    -Decay of value from untouched assets (BSGG/ Stables)

3. Why vote for me?

  • Neutral party with no relations to anyone on the team; I can offer a perspective outside of the usual.
  • Large holder of wMemo; I will review possible risks and assess allocations with complete attention because it affects me more than most others.
  • Far more knowledgeable in Defi and Solidity/Programming then the average user.
  • I want to have a hand in Wonderland finally being run as a legitimate DAO.
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Have you been voting on governance items ser? I hadn’t seen any feedback on the proposals in motion now at vote. And your forum history doesn’t seem to indicate engagement or previous voting I am curious why?

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I don’t know you, have not worked with you, and haven’t seen your participation in the community. That’s my biggest concern. Generally I feel unsafe letting someone who just showed up out of the blue to be overseeing risks involving our investments.

Maybe you’d like to start by being more active in the community and showcasing your knowledge and ability before applying. Would help a lot in getting community support. Remember, this is an election. Public relations play a big part in ensuring your success.


What new unaudited protocol investment are your referring too? I’m happy to address each and every single concern you’ve mentioned if you like. The way this discussion is formatted it seems like it’s more focused on your opinions of past risk management and not on how you would address risks going forward as a candidate for RO.

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Thanks for the application.

There are very little criteria to apply to be an RO. However, your application doesn’t really confirm/show that you meet them.

You mentioned you are a “large holder” of wMEMO, can you confirm that this meets the 5 wMEMO requirement or if not, that you are able to meet the requirement ?

Your application also doesn’t really cover your knowledge of DeFi. You’ve mentioned that you have been in DeFi since 2018 or are “far more knowledgeable” then the average user, but there are no example or demonstration of your knowledge.

Same scenario for evaluating risks. You’ve mentioned “risks” about the current state of Wonderland, but nothing about how you look at risk when investments are being deployed.

I believe these subjects should be better covered as we move in the RFC stage.

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I have previously voted on multiple WIPs. As for the current ones, I am fine with them all except for TAP in regards to the budget for seed investments of a max 15% a quarter. That would be nearly 20million for seed investments in a quarter - far too high. The rest sound ok but run the risk of Wonderland never experiencing large growth with the conservative stable %. There shouldn’t be a flat 20% directional asset allocation either; marketcap and liquidity should be considered. 20% in Eth = great. 20% in latest dog coin = not great.

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I’ve seen the comments on discord as well. Was not aware that I would have to pass an internal vote before even being considered. I do not know any of the staff and have only been more active in the past month or two. I doubt I would even pass internal voting. With that in mind, I’ve decided to just let Sifu and Tikkamasala run for the position.

This is just under my risks to consider. I am talking in a broad sense that it is a risk to consider. However, it’d be great if you could address every other concern listed. I have yet to receive a response from a TO on Discord. The issues I brought up are risks that I would have considered going forward(following governance, transparency of deals, well allocated portfolio balancing risk/reward, screening new protocols team wanted to invest in, inflation heavily affecting bsgg/stables)

Yes, I meet the 5 wMemo requirement. Wasn’t sure how to cover my knowledge - example includes writing my own scripts/bots to track all my stablecoin lp positions to instantly cashout if peg reaches a point I am uncomfortable with. I do not have to sweat when sleeping that I’ll be caught off guard. As for risks in deploying investments, cursory thoughts are: 1)New farms - have to be at least X months old and/or audited. Risk is high if the protocols aren’t exact forks of battle tested protocols. 2)New Token - at least basic thesis from TOs on why the investment along with plans on execution be it twapping over X days or lump buys. Future tokenomics should be considered as well.

There is no internal vote that needs to be passed. The DAO elects its officials. I’m just saying that any election requires a certain level of public relations and you have not been active in the community so it will be hard for people to vote for you compared to someone like Sifu who has been helping the community daily.

@ICA I’ll address each concern since you asked me to. Regarding the OTC arrangement of UWU tokens, this was a very smol investment. After concerns regarding them being locked were presented by the community, Sifu offered to buy it back if anyone posted a forum discussion about it and wanted the transaction reversed (if there was community support for it). Due to these concerns, going forward, we will do these deals through governance via a TMP for DAO approval. Regarding the wMemo LP, it was just setup a week ago or so, and any wMemo that is bought back will eventually be burned. Keep in mind we do need to maintain a small portion of wMemo for paying the team. Regarding unsecured loans, I disagree that we are overallocated…we have $16mm, and $3mm of that is in the TrueFi USDC pool which is 76% unborrowed, liquid funds. That puts us closer to $13-14mm of funds that span across multiple high-quality borrowers and multiple protocols…which is roughly 10% of the portfolio. Sifu, our RO, has also approved these transactions. The BSGG cannot really be farmed in any sizable way…we have discussed this option with Kingmaker and it’s not feasible. The pools that already exist are typically full and will not allow for anywhere near the size wonderland has in BSGG. We also have a sizeable portion of BSGG still vesting. Regarding the fees, Sifuvision collects the fees from the LP in exchange for managing them. We retain a portion since we are the largest holder of SV tokens. This was openly discussed in the discord. The only allocation we’ve made into an “unaudited protocol” you might be referring to would be UWUlend, but given its a fork of Aave it’s been audited several times already in a sense. I believe Sifu is also seeking additional audits as well. I don’t want to detract from your application for RO, so if you have any further questions feel free to DM me in discord.

I messaged you on Discord a few days back for more clarification.