He called the move a significant encroachment on the concept of privacy. DeFi analyst Chris Blec emphasized that the ban extends beyond the US, affecting individuals globally who use VPNs to protect their privacy. The update on Spark Protocol's terms and conditions warning against using VPNs to bypass the restriction has been met with disapproval. Following this, a transaction involving the transfer of over 14.3 million DAO stablecoin into MakerDAO by a single participant was identified, speculated to take advantage of the 8% yield offered through Spark. MakerDAO recently increased the yield on the DAI stablecoin from 3% to 8% as part of the Enhanced Dai Savings Rate (EDSR) implementation.
Privacy advocates have criticized the move as it affects all VPN users, not just those in the US. MakerDAO's lending platform, Spark Protocol, has faced backlash over its decision to ban VPN users, initially aimed at preventing US-based users from accessing the platform.
