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Converting Tokens

In this guide, you will learn how to convert between USDS, sUSDS, DAI and sDAI. Spark enables easy conversion between these tokens at no slippage or fee beyond gas.

Converting between USDS and DAI

  1. Navigate to app.spark.fi and go to the Savings page (the front page).

Navigate to the Savings page

  1. Below the Stablecoins in wallet section, click on the Convert button.

Click Convert

  1. Here you can select the token you wish from and to. E.g. to upgrade DAI to USDS, you select DAI in from and USDS in to.

Select Asset

  1. Enter the amount you wish to convert. Afterwards, carry out the necessary transactions in the Actions section.

Input Amount

  1. Once you have finalized all the transactions, you have succesfully converted your tokens, in this example DAI to USDS.

Confirmation: DAI Converted to USDS

Converting between sUSDS and sDAI

  1. Navigate to app.spark.fi and go to the Savings page.

Navigate to the Savings page

  1. To convert between sDAI and sUSDS you must first withdraw these tokens from Savings. In this example, we will withdraw DAI from sDAI. Click on the Withdraw button for Savings DAI.

Withdraw from Savings

  1. Enter the amount of sDAI you wish to withdraw. Afterwards, carry out the necessary transactions in the Actions section.

Withdraw from Savings Window

  1. Once you have completed the transactions, you will have succesfully withdrawing DAI from sDAI. Now you can convert deposit the DAI directly into Savings USDS to acquire sUSDS. See this guide for how to deposit into Savings.

Confirmation: Withdrawn from Savings

FAQ

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.

See the Converting between USDS and DAI section above for how to upgrade 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.

See the Converting between sUSDS and sDAI section above for how to upgrade 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. See the section above on how to downgrade to DAI.

Can I still use sDAI?

Yes, when depositing funds into Savings, you can select the DAI vault to acquire sDAI. However, you will not be able to earn the additional rewards that come with sUSDS.

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: