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Savings Dai (sDAI) is an ERC-4626 representation/wrapper of DAI that operates within the Dai Savings Rate (DSR) module of the Maker Protocol. By depositing DAI to receive sDAI, users earn yield from the Maker DSR while still being able to transfer, stake, lend, or use the funds in any DeFi application. Swapping between DAI and sDAI does not require a DEX; it is achieved by depositing into or withdrawing from the DSR module, providing a liquid, yield-bearing form of DAI secured by Maker's protocol.
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