DeFi lending protocol Aave Protocol mentioned the TRM API on its app was chargeable for blocking addresses that acquired ETH from unknown sources by way of Tornado Cash.
In a Twitter thread on Saturday, the protocol claims that it receives blockchain intelligence from TRM Labs and has built-in TRM API into its frontend to guarantee a protected and safe system.
According to the DeFi protocol, “TRM API risk parameters identify all wallets that have interacted with Tornado Cash contracts” and in compliance with OFAC sanctions, block all addresses that interacted submit sanction.
This explains why a number of addresses entered the blocklist, together with those “sent “dusted” ETH by third events interacting with the Tornado Cash contracts with out consent.”
It added that it has addressed the problem and can “continue to evaluate responsible and reasonable risk mitigation given the circumstances.”
Additionally, the protocol reiterated that it stays decentralized and ruled by a DAO, urging its “community to remain engaged and actively fight for open and fair finance.”
Justin Sun Regains Access to Aave
Meanwhile, Justin Sun, whose Aave account was a kind of blocked for receiving $0.1 ETH by way of Tornado Cash, has confirmed that the account is energetic once more.
Available data additionally confirmed that different decentralized protocols like Uniswap, Balancer, dYdX, and others stopped customers due to the OFAC sanction on Tornado Cash.
Crypto Community Questions DeFi Protocols “Decentralization”
Some DeFi protocols’ determination to display screen and block addresses that interacted with Tornado money has led to questions on their “decentralization.”
In Aave’s case, the neighborhood questioned the logic of blocking a mean person’s entry to the entrance finish when malicious gamers might nonetheless select to instantly work together with the contract.
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