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Learn about sDAI and the Dai Savings Rate. |
{% hint style="info" %} Note: Savings DAI is the old version of Savings USDS. Learn how to upgrade to sUSDS and earn a higher yield here. {% endhint %}
Savings Dai (sDAI) is the old version of sUSDS. sDai is a tokenized representation of Dai deposited in the Dai Savings Rate (DSR) offered by Sky. The sDAI token enables users to receive returns on their DSR deposits while still being able to transfer, stake, lend and use it in any way they want.
{% hint style="info" %} Note: Savings Dai and the Dai Savings Rate are non-custodial and permissionless smart contracts offered by Sky, and are not issued or deployed by Spark. Spark does not have any control over the Sky Savings Rate or the sDAI token. {% endhint %}
sDAI increases in value according to the DSR, as its Dai denominated value gradually increases over time. sDAI is an accumulating token, not a rebasing token. Each sDAI is fungible and always instantly redeemable for DAI.
To acquire sDAI you can deposit Dai and other stablecoins using the Spark App.
For technical documentation on the sDAI implementation please refer to the Developer docs.
Dai Savings Rate (DSR) is a feature of the Sky Protocol that enables any Dai holder to earn a savings rate on their Dai. The DSR is paid out in Dai.
Dai does not automatically earn savings, you must activate the DSR by depositing Dai into the Dai Savings Rate contract. The Dai is not locked and can always be instantly withdrawn.
The Dai Savings Rate is funded by the borrowing fees accrued by the Sky Protocol.
The Dai Savings Rate is set by Sky Governance and is subject to change. Spark has no control over the Dai Savings Rate.