Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
MakerDAO, a notable early innovator in decentralized finance, has faced backlash regarding its choice to prevent virtual private network (VPN) users from accessing its newly introduced lending platform, Spark Protocol.
As of now, VPN users attempting to visit the Spark Protocol website encounter an error message: “Accessing this website via VPN is not allowed.”
Cointelegraph conducted tests using VPNs based in Australia and Singapore and received the same warning. Source: Spark Protocol
This action seems to be associated with Maker’s efforts to limit access to the crypto lending platform for users in the United States — a point addressed in Spark Protocol’s terms of service revised on May 9 — which also cautions against utilizing VPNs to bypass the restriction.
Spark Protocol’s terms of service explicitly forbids U.S. users from employing a VPN to hide their U.S. residency. Source: Spark Protocol
In a tweet dated August 6, DeFi analyst Chris Blec expressed his discontent with the decision, emphasizing that it effectively imposes a global ban on VPN usage, not limited to the U.S.
“It’s one thing to block U.S. residents,” Blec remarked, adding that “it’s an entirely different matter to restrict anyone worldwide who is using a VPN for privacy,” describing it as an “actual war on privacy.”
https://t.co/jQMBepF1j7
— Chris Blec (@ChrisBlec) August 6, 2023
Related Posts
Blec, who identifies as an advocate for decentralization and privacy, also criticized MakerDAO’s founder Rune Christensen and the company’s other developers in a follow-up tweet, claiming they have prioritized financial gain over user privacy:
“The root of the problem here is that these developers are putting profit over principle. They’re prioritizing their bank account balance over your privacy and your rights.”
Cointelegraph has reached out to MakerDAO for a statement but has not yet received a response.
Related: MakerDAO increases DAI yield in bid to boost demand
Launched in May, the Spark Protocol reportedly provides users with annual returns of up to 8% by lending DAI. The lending platform was developed as a soft fork of Aave V3 by Phoenix Labs, a blockchain research and development organization established by the Maker Foundation.
Before lending cryptocurrencies on Spark Protocol, users must consent to not using a VPN. Source: Spark Protocol
Spark Protocol is said to utilize TRM’s blockchain intelligence services to prevent wallets from engaging in legally prohibited activities on the platform.
Magazine: Joe Lubin — The truth about ETH founders split and ‘Crypto Google’
