Spark, by MakerDAO, has announced that it is now offering a yield of 8% on DAI, making it the highest yield offered by a stablecoin issuer. This is a massive increase from 3%, especially on a stablecoin that ranks third across the globe.
Yield is basically the rate of interest that users get for stocking their funds on a particular platform. This can be viewed in line with keeping funds in a savings account, enabling banks to offer interest on the average balance every month, quarter, or year as per their policies. So, when users keep their DIA on Spark, they qualify for a yield of 8% on their balance.
This comes after a huge transaction was executed by an individual wallet. Reportedly, the wallet is said to have transferred 14.32 million DAI tokens to Spark with the intention of gaining the said yield. The lending platform is yet to comment on this transaction, but it can be assumed that the user has all the intentions of not missing out on the opportunity of earning some attractive yield.
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Also, Spark has announced that it is now restricting access to the front end of its platform via VPN. That is short for virtual private networks, and the move is alleged to make sure that users from certain regions do not take unfair advantage of the features. The announcement and the move are in line with blocking users of the region where its operations are not yet identified.
It will largely affect the users who hail from the US. Restricting access to the platform via VPN has been defined as an unusual move in the DeFi sphere. Spark is looking at this from the viewpoint of not letting users evade geographical restrictions. Spark has begun showing a message to those who are accessing the lender’s platform with a VPN.
It roughly reads that accessing this platform is not allowed with VPN; however, users can reach out to the team at the given email address in a situation where they believe that the system has made an error. Sharing their current IP address is mandatory in the email.
Spark sources its liquidity from MakerDAO and accepts only select tokens as collateral. These are DAI, Ethereum, and staked Ether. DAI and ETH are doing well at the time of drafting this article. ETH is inching closer to the mark of $2k, with the trading value currently residing at $1,830.25. DAI is at $0.9996, and the community is expecting it to surpass the value of $1 by the end of this year.
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Existing and new users of Spark can head over to the platform for a yield of 8%. A rise from 3% makes it a hot commodity in the DeFi sphere while also increasing the risk factor in equal proportion.
