Learn about sDAI and the Dai Savings Rate

What is sDAI?

Savings Dai (sDAI) is a tokenized representation of Dai deposited in the Dai Savings Rate (DSR) offered by MakerDAO. 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.

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.

What is the Dai Savings Rate?

Dai Savings Rate (DSR) is a feature of the Maker 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 The Dai is not locked and can always be instantly withdrawn.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 Maker Protocol. You can always find the current Dai Savings Rate on the Cash and Savings page in the Spark App.

The Dai Savings Rate is set by Maker Governance and is subject to change. Spark has no control over the Dai Savings Rate.

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