Spark Protocol’s VPN Ban Sparks Controversy: Is Profit Over Principle?

• MakerDAO’s recently launched lending platform, Spark Protocol, has sparked controversy by restricting access to users attempting to access the website with a virtual private network (VPN).
• VPN users attempting to access Spark Protocol are met with an error message warning them that using a VPN is not allowed.
• The measure appears to be linked to Maker’s attempt to restrict United States users from accessing the crypto lending platform and has been met with criticism from privacy advocates.

Controversy Over MakerDAO’s Spark Protocol

MakerDAO, one of the early pioneers of decentralized finance, has sparked controversy over its decision to block virtual private network (VPN) users from accessing its recently launched lending platform, Spark Protocol. At the time of writing, VPN users that attempt to access the Spark Protocol website will be met with an error: “Accessing this website via VPN is not allowed.”

Blocking US Users

The measure appears to be linked to Maker’s attempt to restrict United States users from accessing the crypto lending platform, discussed in a May 9 update to Spark Protocol’s terms of service warns against the use of VPNs to circumvent the block. Spark Protocol’s terms of service prohibits U.S. users from using a VPN to conceal their U.S. residency.

Criticism From Privacy Advocates

In an Aug. 6 tweet, DeFi analyst Chris Blec was among those saying he was “disgusted” with the decision, highlighting it effectively acts as a blanket ban on VPNs across the globe, not just in the U.S.. Blec also took shot at MakerDAO’s creator Rune Christensen and other developers for 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.”

Launching The Platform

Launched in May, the Spark Protocol supposedly offers users up 8% in annual returns by lending DAI cryptocurrency tokens via Aave v3 soft fork created by Phoenix Labs – a blockchain research and development firm launched by MakerDAO itself .

No Response From MakerDAO

Cointelegraph has reached out to MakerDAO for comment but did not receive an immediate response regarding their controversial decision blocking VPN usage on their lending platform – sparking backlash amongst privacy advocates around the world