In 2024 MakerDAO, the protocol behind DAI, rebranded as Sky and introduced USDS as the upgraded version of DAI. Any DAI can be converted into USDS one to one, and back, through the official converter; DAI itself was not shut down and continues to work. The governance token MKR got an upgraded counterpart, SKY, at a rate of 24,000 SKY per MKR. For most holders the change is optional: keep DAI, or upgrade to USDS if you want the Sky Savings Rate and the newer integrations.
Timeline of the change
- August 2024: MakerDAO announces the rebrand to Sky, USDS and SKY.
- September 2024: USDS and SKY go live with two-way converters DAI↔USDS and MKR↔SKY.
- After the launch: new rewards and the savings rate focus on USDS; DAI's own savings rate (DSR) continues as governance decides.
Exact dates and current parameters are on sky.money and in Sky's governance portal. Parameters such as rates change by vote, so treat any number you read in an article, including this one, as a snapshot.
What USDS is
USDS is a decentralised stablecoin with the same backing model as DAI: it is minted against collateral locked in vaults (crypto and tokenised real-world assets) and kept near $1 by protocol mechanisms, including the Peg Stability Module that swaps it against other stablecoins. The difference is governance and features: USDS was designed for the Sky ecosystem's rewards, its savings token sUSDS and its spread to other chains through Sky's own bridges. Both tokens use 18 decimals.
| DAI | USDS | |
|---|---|---|
| Conversion | 1 DAI → 1 USDS via the official converter | 1 USDS → 1 DAI, also reversible |
| Savings token | sDAI (DAI Savings Rate) | sUSDS (Sky Savings Rate) |
| Governance token | MKR | SKY (1 MKR = 24,000 SKY) |
| Decimals | 18 | 18 |
| Support at KOT.CASH provider | DAI on Ethereum via a second provider, float only | Not listed |
Should you convert DAI to USDS?
Convert if you want the Sky Savings Rate through sUSDS or a protocol you use pays rewards only in USDS, such as Sky's own token rewards for USDS deposits. Keep DAI if you need the widest acceptance on exchanges and in older DeFi integrations: DAI still has deeper support among centralised venues and payment tools. The conversion is a single Ethereum transaction through the official interface, so on mainnet you pay gas in ETH — check the cost with the gas fee calculator before converting a small amount.
Savings rates and how to compare them
Both sDAI and sUSDS are vault tokens: you deposit the stablecoin and receive a token whose value grows at the savings rate set by governance. The rate is variable. To compare it with other yield sources, convert all rates to the same basis (APY) and subtract gas costs for entering and leaving, which matter for small deposits on Ethereum. The stablecoin yield comparison and the compound interest calculator do that arithmetic.
DAI and USDS on KOT.CASH
DAI on Ethereum can be swapped on KOT.CASH through a second liquidity provider, Heleket. On 21.10.2026 the quoted minimum for DAI to USDT TRC20 was about 6.8 DAI, the deposit is credited after 1 confirmation, the rate is float only (no fixed rate on this route) and processing takes 5–30 minutes. USDS and sUSDS are not supported. If you hold USDS and need USDT or BTC, convert USDS back to DAI in the Sky interface first, then swap DAI. SKY, the governance token, is listed as an ERC-20 at the main provider.
USDS on other chains
Sky has extended USDS and sUSDS to layer-2 networks and Solana through its own bridge infrastructure, so you may see USDS on Base or Arbitrum in a wallet. Those tokens are bridged representations; before moving them anywhere, check that the receiving service supports USDS on that exact network. Exchanges that list DAI on Ethereum often do not list USDS at all, and very few list it on layer 2s. When in doubt, bring the funds back to Ethereum, convert to DAI and swap from there.
Risks that stay the same
- Collateral risk. A sharp crash in collateral prices or a failure of real-world asset holdings would stress both DAI and USDS.
- Peg Stability Module dependence. A large part of the backing has been other stablecoins, mainly USDC, so USDC's risks pass through.
- Governance decisions. Rates, collateral types, debt ceilings and features change by vote of SKY holders, and a small group of large holders can carry a vote.
- Freeze features. Discussion around a freeze function for USDS drew criticism in 2024; check the current contract and Sky documentation if this matters to you.
FAQ
Is DAI being shut down?
No. DAI continues to work; USDS is an optional upgrade and the converter works both ways.
How do I convert DAI to USDS?
Through the official Sky interface at a 1:1 rate, as an Ethereum transaction that costs gas in ETH.
What is the MKR to SKY rate?
1 MKR converts to 24,000 SKY.
What is sUSDS?
The savings token of USDS; its value grows at the Sky Savings Rate set by governance.
Can I swap DAI or USDS on KOT.CASH?
DAI on Ethereum yes, via Heleket with a float rate; USDS is not supported, so convert it back to DAI first.