One of the first leaders of decentralised finance, MakerDAO, started facing criticism for its decision to prevent users of virtual private networks (VPNs) from accessing Spark Protocol, its newly developed lending platform.
The error message that appears when VPN users try to access the Spark Protocol website now reads, “Accessing this website through VPN is not permitted.”
The move is made to prohibit Maker’s effort to access the crypto lending platform for US citizens, which is included in the Spark Protocol’s May 9 terms of service update, which also forbids the use of VPNs to get past the restriction.
DeFi analyst Chris Blec tweeted on August 6 that he was “disgusted” by the decision and noted that it effectively imposes a blanket ban on VPNs worldwide, not just in the United States.
It’s one thing to restrict US citizens, but it’s quite another to prohibit anyone else in the globe who is using a VPN for privacy, according to Blec, who added that this amounts to a “actual war on privacy.”
In a follow-up tweet, Blec, a self-described supporter of decentralisation and privacy, also targeted MakerDAO’s founder Rune Christensen and the company’s other developers, alleging that they put user privacy below profits
The developers’ preference for business over morality is the crux of the issue in this situation. They choose their bank account balance over your rights and privacy.
The Spark Protocol, which was introduced in May, is said to provide users with annual profits of up to 8% by lending DAI. The lending network was developed by Phoenix Labs, a blockchain research and development company established by the Maker Foundation, as a soft fork of Aave V3.
According to reports, Spark Protocol employs TRM’s blockchain intelligence services to restrict wallets from Spark Protocol that participate in illegal activity.
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