DefiLlama, a DeFi TVL aggregator, announced Monday that Sifu, the pseudonymous co-founder of failed Canadian crypto exchange QuadrigaCX, has launched a new decentralized finance (DeFi) protocol called UwU Lend.

UwU Lend is forked from lending giant Aave, a liquidity marketplace that offers deposits and loans, DefiLlama said. Users can borrow against the platform’s native token, UWU, and an algorithmic stablecoin called Magic Internet Money (MIM). In other words, users earn interest on deposits and pay interest on loans.

The project went live on September 21 and has already secured $57.5 million in total value locked (TVL). UwU is different from other lending protocols. The DeFi platform accepts collateral not available on other lending protocols like Aave and Compound: users can borrow against tokens like Sifu’s own SIFU and overcollateralized MIM stablecoin.

Why the public finds it difficult to accept Sifu

What makes this report interesting is that Sifu’s comeback comes after a rough few years following the collapse of QuadrigaCX.

In January, it was revealed that Sifu, whose real name is Michael Patryn, was one of the co-founders of a notorious Canadian cryptocurrency exchange that defrauded investors of more than $190 million in 2019.

During that time, the pseudonymous treasury manager for decentralized finance (DeFi) protocol Wonderland was revealed to be Michael Patryn. Wonderland felt the heat after its users revealed their Treasure Boss, Michael Patryn, also known as Sifu or 0xSifu.

Wonderland founder Daniele Sestagalli responded to the criticism, stating that he was aware of the situation. But he chose to ignore it based on the belief that an individual’s past does not determine his future. However, his opinion was not well received by investors, who were skeptical about Patryn’s involvement in the project, especially since her role relates to financing management.

Despite Sestagalli’s initial support of Patryn, after reflection, he then asked Patryn to step down until a community vote determined if he could stay. But in early February, Wonderland launched a vote and unanimously approved the decision to remove Sifu from his position as treasurer.

Patryn co-founded the Canadian exchange QuadrigaCX, which went bankrupt in 2019 amid suspicious circumstances, including the death of its CEO, Gerald Cotten. QuadrigaCX was founded by Gerald Cotten and Patryn in 2013 and quickly became one of the largest crypto exchanges by trading volume in Canada. But in 2019, the exchange turned out to be a Ponzi scheme that defrauded investors of over $190 million worth of crypto funds in connection with the death of its CEO, Gerald Cotten.

Patryn has changed her name several times to hide her identity. He was previously convicted of credit card fraud and pleaded guilty to various related offenses in the early 2000s.

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