Decentralized finance platform Oasis.app says approved addresses will no longer be accessible to the application, according to a new Community Discord post on Thursday. As a result of changes to the Terms of Service, wallets flagged as high risk are prohibited from using Oasis.app to manage positions or withdraw funds. Instead, such a range of users must directly interact with the respective underlying protocols where funds are stored or find some other service.
Explaining the decision, Oasis.app team member Gabriel said:
“We recently needed to update the Oasis.app front-end’s Terms of Service to comply with relevant laws and regulations. In line with the latest regulations, Oasis.app has an updated Terms of Service. Any accepted Addresses will no longer be able to use the Oasis.app functionality.”
Oasis DeFi has become a popular platform for lending and lending by raising $6 million Series A in 2020. The protocol has processed $4.6 billion in transactions over the past 30 days and handled $3.42 billion in deposits.
At the time of publication, it is not immediately clear what tool Oasis is using to identify high-risk wallets. Similar to Oasis, decentralized exchange Uniswap recently began blocking wallets allegedly associated with illegal activities using data from TRM Labs. TRM Labs helps entities detect and investigate crypto-related financial crime through on-chain analysis. So far, feedback about Oasis’ new remedy has been mostly negative. One Discord user, Eagles#2541, claims:
“I’m actually in conversation with Oasis with an account that has direct exposure to Tornado Cache. I can’t reproduce the issue others are getting, so it’s probably just that the team is incompetent.” and have implemented some very wide nets with arbitrary holes in it.
It appears https://t.co/S7tb5tREIC, following Uniswap, has started sending all your data to TRM Labs. This happens when you connect to an address they don’t like. No way to close positions from UI, no explanation or anything. pic.twitter.com/n2ocN8jQTq— bantag (@bantg) 11 August 2022