Upgrading to USDS & sUSDS
In this guide, you will learn about the new upgraded tokens offered by Sky (formerly MakerDAO), and how to upgrade Dai to USDS, the new USD stablecoin by Sky.
What is USDS?
USDS is the new version of DAI, issued by Sky. USDS is a stablecoin pegged to the US dollar. USDS is not issued or deployed by Spark.
USDS enables users to earn additional rewards, such as a higher APY on Savings USDS, and Sky Star token rewards.
Follow this guide to upgrade your DAI to USDS:
What is sUSDS?
sUSDS is the new version of sDAI, offered by Sky which offers a higher yield. sUSDS represents USDS deposited into and earning the Sky Savings Rate. sUSDS is a non-custodial token offered by Sky, and not issued or deployed by Spark.
Follow this guide to upgrade your sDAI to sUSDS:
What is the Sky Savings Rate?
The Sky Savings Rate (SSR) is a feature of the Sky Protocol that enables any USDS holder to earn a savings rate on their USDS, by depositing into the SSR. The SSR is paid out in USDS.
The Sky Savings Rate is funded by the borrowing fees accrued by the Sky Protocol. You can always find the current Sky Savings Rate on the Savings page in the Spark App.
The Sky Savings Rate offers higher yield than the old Dai Savings Rate.
The Sky Savings Rate is set by Sky Governance and is subject to change. Spark has no control over the Sky Savings Rate.
Do I have to upgrade?
You do not have to upgrade to USDS or sUSDS. DAI and sDAI will continue to function as is. However you might experience worsened liquidity in these tokens over time. Also you will not be able to earn the additional rewards.
Is there a deadline for upgrading?
There is no deadline for upgrading to USDS or sUSDS.
Can I downgrade to DAI?
Yes, you are always able to downgrade USDS to DAI at no slippage or fee beyond gas cost as these tokens are completely fungible and convertable at a 1:1 rate.
Follow this guide to downgrade your USDS to DAI:
Can I still use sDAI?
Yes, when depositing funds into Savings, you can use a toggle to select if you want to receive sUSDS or sDAI.
Can I borrow USDS?
Yes, you can borrow USDS using the Easy Borrow Flow. However, on the backend you are borrowing DAI, which is instantly upgraded for USDS, meaning your debt will be and must be repaid in DAI. In order to repay DAI debt, you can downgrade USDS to DAI following the steps in this guide:
Can I repay my debt in USDS?
No, if you borrow USDS, your position debt will be in DAI and must be repaid in DAI. In order to repay DAI debt, you can downgrade USDS to DAI following the steps in this guide: