MakerDAO’s Spark Protocol Blocks VPN Users

Users have criticized MakerDAO’s decision to block VPN access to its recently launched lending platform, Spark Protocol. 

As of the time of writing, VPN users attempting to access the Spark Protocol website encountered an error message stating, “Accessing this website via VPN is not allowed.” Maker’s restriction seems to stem from its decision to prevent users from the United States from accessing the cryptocurrency lending platform. A May 9 update to Spark Protocol’s terms of service warns users against bypassing the block by using VPNs. 

However, DeFi analyst Chris Blec expressed strong disapproval of the decision in an Aug. 6 tweet, stating that he is “disgusted” with the move. He emphasized that it effectively imposes a blanket ban on VPNs worldwide, not just in the U.S.

Blec, a self-proclaimed advocate for decentralization and privacy, criticized MakerDAO’s founder Rune Christensen and the firm’s other developers in a response tweet, accusing them of prioritizing profits over user privacy.

The root of the problem here is that these developers are putting profit over principle. They’re putting their bank account balance ahead of your privacy and your rights.”

Spark Protocol supposedly offers users up to 8% in annual returns by lending DAI. Phoenix Labs, a blockchain research and development firm established by the Maker Foundation, created Spark Protocol as a soft fork of Aave v3. Reports indicate that the platform reportedly utilizes TRM’s blockchain intelligence services to block wallets engaged in legally prohibited activities.