As reported by CryptoPotato, MakerDAO’s recently launched lending platform Spark Protocol sparked a fierce backlash for banning front-end VPN users. The original intention was to block US users from accessing the platform, but VPN usage was banned regardless of whether the user was located in the US. This prompted a strong response from privacy advocates.
MakerDAO is increasing the yield on the DAI stablecoin from 3% to 8% as part of the implementation of the Enhanced DAI Savings Rate (EDSR). After the yield change, on-chain data discovered a strange transaction in which a personal wallet transferred more than 14.3 million DAO stablecoins to MakerDAO, and a crypto actor performed the transaction. The transfer is speculated to be to take advantage of the 8% yield offered by the MakerDAO lending platform.
Although Maker restricted access to the crypto lending platform to US users, many were surprised to see a warning in the terms and conditions of the Spark protocol prohibiting the use of VPNs to bypass restrictions. Popular DeFi analyst Chris Blec expressed strong opposition, emphasizing that this is effectively a blanket ban on VPNs worldwide, beyond the borders of the United States.
