What's sDAI?

Savings DAI (sDAI) is a yield-bearing token representing DAI deposited in Maker's DAI Saving Rate (DSR) module. sDAI is connected to the DAI Savings Rate Module, which automatically accrues the DAI savings rate yield set by Maker governance.

When depositing into the DSR through you can choose to mint sDAI, this will then be available in your wallet to use as you please. One example where you can use the sDAI token is with Ajna to borrow USDC against it, which you can try here. For example:

You deposit 10,000 DAI into the DSR Product and opt-in to minting sDAI. Once your deposit transaction is successfully submitted, you will receive the equivalent of sDAI at the current price.

To illustrate, let's assume sDAI price is 1.03 DAI. When you deposit 10,000 DAI you will get 9,700 sDAI. sDAI will accrue interest and constantly accumulate; this means that sDAI's value effectively always increases relative to DAI. After some time, when sDAI price reaches 1.05 DAI, for example, you can convert your 9,700 sDAI to 10,185 DAI.

You can find the current DAI Savings Rate on

You can find the sDAI Token Contract here

More information on Maker Governance can be found here

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