Holders of MakerDAO’s DAI Can Earn 8% APY, But VPN Users Are Blocked
Holders of MakerDAO’s decentralized stablecoin DAI can now earn up to 8% annual percentage yields. However, the protocol has decided to block users of virtual private networks (VPNs), leading to backlash from privacy advocates.
Key Points:
- The Dai Savings Rate (DSR) is currently paying out 8% APY with no additional risk compared to holding DAI.
- Only about 8% of DAI holders currently use the DSR, which is why the rate is so high.
- MakerDAO’s Aave competitor, Spark Protocol, is not available for users based in the United States, likely due to regulatory uncertainty.
- Spark Protocol also blocks VPN users globally, not just in the US, to prevent masking of internet addresses and locations.
- The VPN blockade has sparked criticism from privacy and decentralization advocates, who argue that it is an attack on privacy.
MakerDAO’s decision to block VPN users and restrict access to its Spark Protocol has caused controversy among privacy advocates. While the high-interest rate offered by the Dai Savings Rate is attractive to DAI holders, the limitations imposed on VPN users and those based in the US have raised concerns about censorship and privacy. Some critics argue that this goes against the principles of decentralization and cryptocurrency. It remains to be seen whether MakerDAO will reconsider its stance and find a solution that addresses the concerns of its users.
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