DeFi platform Oasis to block wallet addresses deemed at-risk

Users report that their sessions were disconnected when trying to interact with Oasis with allegedly high risk wallets.

According to a new community Discord post on Thursday, decentralized finance platform Oasis.app says that sanctioned addresses will no longer be able to access the application. As a result of the change to the terms of service, wallets flagged as high risk are prohibited from using Oasis.app to manage positions or withdraw funds. Instead, such category of users must interact directly with the relevant underlying protocol where funds are stored or find another service.

In explaining the decision, Oasis.app team member Gabriel said:

“We’ve recently needed to update the Terms of Service of the Oasis.app front-end to comply with the relevant laws and regulations. In line with the latest regulations, Oasis.app has an updated Terms of Service. Any sanctioned addresses will no longer be able to access Oasis.app functionality.”

Raising a $6 million Series A in 2020, Oasis has grown to become a popular platform for DeFi borrowing and lending. The protocol has processed $4.6 billion worth of transactions in the past 30 days and manages $3.42 billion in deposits. 

At the time of publication, it is not immediately clear which tools Oasis is using to identify wallets deemed to be high risk. Similar to Oasis, decentralized exchange Uniswap recently began to block wallets allegedly associated with illicit activities by using TRM Labs’ data. TRM Labs helps entities detect and investigate crypto-related financial crime via on-chain analysis. Thus far, feedback regarding Oasis’ new measure has been mostly negative. One Discord user, Eagles#2541, claims:

“I’m actually just interacting with Oasis with an account that has had direct exposure to Tornado Cash. I can’t reproduce the issue that others are getting, so it’s probably just that the team is incompetent and has applied some very wide net with arbitrary holes in it. 

It appears https://t.co/S7tb5tREIC, following Uniswap, has started sending all your data to TRM Labs. This is what happens when you connect with an address they don’t like. No way to close positions from the UI, no explanation or anything. pic.twitter.com/n2ocN8jQTq

— banteg (@bantg) August 11, 2022