MakerDAO Increases Yield on DAI
MakerDAO, the issuer of DAI stablecoin, has recently increased the yield on DAI from 3% to 8%. This makes it one of the highest rates offered by a major stablecoin issuer. As a result of this change, a significant transaction of 14.32 million DAI was transferred into MakerDAO by a single participant, likely to take advantage of the higher yield. The yield is provided through MakerDAO’s lending platform, Spark.
Restrictions on Accessing Spark
Alongside the yield changes, Spark has implemented a restriction on users accessing its platform via virtual private networks (VPNs). This measure is uncommon in the DeFi sector and is primarily aimed at blocking users from specific geographies, including the United States. Users attempting to access Spark with a VPN are explicitly warned that it is not allowed. This move seems to be specifically targeting U.S.-based users.
Verification of VPN Restrictions
The Block, an independent source, has verified that Spark is indeed blocking VPN usage on its platform. This further confirms the platform’s stance on VPNs and its determination to prevent users from evading geographical restrictions, particularly those based in the United States.
About Spark and its Integration with MakerDAO
Spark is a software fork of Aave’s Version 3 lending protocol and operates within the MakerDAO ecosystem. It sources DAI liquidity directly from Maker and offers DAI loans, accepting assets like ether, staked ether, and DAI as collateral. Despite its integration, Spark operates independently from the MakerDAO protocol.
Hot Take
MakerDAO’s decision to increase the yield on DAI and the restrictions on accessing the Spark platform with VPNs indicate a strategic move to attract more users and possibly comply with regulatory requirements. By offering a competitive yield and ensuring users from specific geographies are unable to access the platform, MakerDAO aims to strengthen its position in the DeFi space while adhering to regulatory guidelines.
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