Spark, a product by MakerDAO, has announced an 8% yield on DAI, now offering the highest yield among stablecoin issuers. This is a significant increase from the previous 3%, particularly notable for a stablecoin that ranks third globally.

Yield refers to the interest users earn for holding their funds on a platform, similar to interest earned on a savings account balance. By holding DAI on Spark, users can earn an 8% yield on their balance.

This announcement follows a major transaction where an individual wallet transferred 14.32 million DAI tokens to Spark, presumably to take advantage of the new yield rate. The platform has not commented on this transaction yet, but it suggests the user is keen to capitalize on the attractive yield opportunity.

Additionally, Spark has restricted access to its platform's front end via VPNs to prevent users from certain regions from exploiting the platform's features. This move is aimed at blocking users from regions where Spark's operations are not officially recognized, primarily affecting users in the US. Those attempting to access the platform with a VPN are met with a message prohibiting such access and are directed to contact Spark's team if they believe there's an error, including their current IP address in the email.

Spark sources its liquidity from MakerDAO and only accepts specific tokens as collateral, including DAI, Ethereum, and staked Ether. At the time of writing, ETH is trading close to $2,000 at $1,830.25, and DAI is valued at $0.9996, with expectations to surpass $1 by year-end.

Existing and new Spark users can now benefit from the 8% yield, which makes Spark a highly attractive option in the DeFi sphere, albeit with an increased risk factor.