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  "id": "dai-and-usds",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/dai-and-usds/",
  "collection": "stablecoins",
  "title": "DAI and USDS: connected tokens in the Sky system",
  "description": "DAI and USDS have a documented one-to-one conversion route, while USDS, sUSDS and governance tokens perform different roles. Understand the shared dependencies.",
  "aliases": [
    "Dai and Sky",
    "DAI versus USDS"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T15:09:00.630Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "DAI and USDS are distinct dollar-targeting tokens connected by Sky’s documented 1:1 bidirectional converter. USDS uses an upgradeable token design; sUSDS is a separate savings wrapper for USDS. Their shared protocol context includes collateral, governance and external dependencies, and a conversion to USDS is not a bank-dollar redemption.",
    "claimId": "dai-and-usds-quick-answer",
    "sourceIds": [
      "sky-usds",
      "sky-susds",
      "sky-vat",
      "sky-collateral"
    ]
  },
  "keyFacts": [
    {
      "label": "Converter",
      "value": "The documented DAI↔USDS route converts 1:1 with no route fee; network gas is separate.",
      "sourceIds": [
        "sky-usds"
      ],
      "id": "converter",
      "claimId": "dai-and-usds-fact-converter"
    },
    {
      "label": "Savings token",
      "value": "sUSDS represents a savings vault position, not plain USDS.",
      "sourceIds": [
        "sky-susds"
      ],
      "id": "savings-token",
      "claimId": "dai-and-usds-fact-savings-token"
    },
    {
      "label": "Backing scope",
      "value": "The June 2026 Sky description includes multiple collateral and investment categories.",
      "sourceIds": [
        "sky-collateral"
      ],
      "id": "backing-scope",
      "claimId": "dai-and-usds-fact-backing-scope"
    }
  ],
  "prerequisites": [
    "crypto-backed-stablecoins",
    "stablecoin-yield-sources"
  ],
  "sections": [
    {
      "id": "conversion",
      "heading": "A token conversion, not a dollar withdrawal",
      "sourceIds": [
        "sky-usds"
      ],
      "paragraphs": [
        "Sky’s USDS developer documentation accessed on 2 October 2026 describes a DAI-USDS converter that works in both directions at a fixed 1:1 ratio without a converter fee. It also describes USDS as an ERC-20 token using an upgradeable proxy design. Those facts concern the documented route and implementation, not every third-party trading pool.",
        "Converting 100 DAI through that route yields 100 USDS before separately paid transaction costs. It changes the token held, not the wallet’s bank balance. Selling either token in a market can produce a different price, and using a bridge creates additional steps."
      ]
    },
    {
      "id": "shared-system",
      "heading": "Collateral accounting and governance still matter",
      "sourceIds": [
        "sky-vat",
        "sky-liquidation",
        "sky-collateral"
      ],
      "paragraphs": [
        "Sky’s core accounting documents track collateral, debt and authorized modules. Liquidation documentation explains the sale process for unsafe positions. The June 2026 collateral overview additionally describes stablecoin, lending and traditional-asset exposures. Describing the entire system as backed only by ETH would omit that documented scope.",
        "On-chain visibility helps inspect balances and parameters, but it does not turn off-chain investments into trustless assets. Oracle, adapter and governance permissions affect how those balances correspond to real backing. A new token name does not remove the need to follow those dependencies."
      ]
    },
    {
      "id": "savings",
      "heading": "USDS and sUSDS answer different balance questions",
      "sourceIds": [
        "sky-susds",
        "sky-collateral"
      ],
      "paragraphs": [
        "Sky documents sUSDS as an ERC-4626 savings implementation. A user deposits USDS and receives shares; the share-to-asset conversion describes the underlying USDS represented. Plain USDS itself is not the savings share and should not be assigned the savings rate in an article or comparison table.",
        "For example, 50 shares representing 1.02 USDS each correspond to 51 USDS before relevant conditions. This is illustrative arithmetic, not a live exchange rate. The savings rate and wider parameters can change, so a current product description needs a dated parameter check rather than a permanent yield claim."
      ]
    }
  ],
  "faq": [
    {
      "question": "Do I have to call DAI and USDS the same token?",
      "answer": "No. They are distinct tokens with a documented conversion relationship. Preserve their names and contract identities.",
      "sourceIds": [
        "sky-usds"
      ]
    },
    {
      "question": "Does USDS automatically earn the savings rate in a wallet?",
      "answer": "No. Sky distinguishes plain USDS from the separate sUSDS savings implementation.",
      "sourceIds": [
        "sky-susds",
        "sky-collateral"
      ]
    }
  ],
  "claims": [
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      "statement": "DAI and USDS are distinct dollar-targeting tokens connected by Sky’s documented 1:1 bidirectional converter. USDS uses an upgradeable token design; sUSDS is a separate savings wrapper for USDS. Their shared protocol context includes collateral, governance and external dependencies, and a conversion to USDS is not a bank-dollar redemption.",
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      "sourceLocators": [
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          "sourceId": "source-ef2407e0023c001f",
          "locator": "Overview; DAI USDS Converter"
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          "locator": "Overview"
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          "locator": "Vault Management; Failure Modes; Accounting"
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        {
          "sourceId": "source-e789fc9fcc6cbef2",
          "locator": "How USDS holds its peg; Protocol Collateral; Does USDS generate yield?"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
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      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "checkedAt": "2026-10-02T15:09:00.630Z",
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        "notes": [
          "Sky USDS docs state fixed1:1 bidirectional converter with no fee; sUSDS docs describe ERC-4626 shares. USDS upgradeable proxy is explicit.",
          "Sky collateral overview labels data as12June2026 and lists diversified categories; article does not repeat promotional safety/ranking claims.50×1.02=51 illustration checked."
        ]
      }
    },
    {
      "id": "dai-and-usds-fact-converter",
      "articleSlug": "dai-and-usds",
      "statement": "Converter: The documented DAI↔USDS route converts 1:1 with no route fee; network gas is separate.",
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        "source-ef2407e0023c001f"
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      "sourceLocators": [
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        "notes": [
          "Sky USDS docs state fixed1:1 bidirectional converter with no fee; sUSDS docs describe ERC-4626 shares. USDS upgradeable proxy is explicit.",
          "Sky collateral overview labels data as12June2026 and lists diversified categories; article does not repeat promotional safety/ranking claims.50×1.02=51 illustration checked."
        ]
      }
    },
    {
      "id": "dai-and-usds-fact-savings-token",
      "articleSlug": "dai-and-usds",
      "statement": "Savings token: sUSDS represents a savings vault position, not plain USDS.",
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        "notes": [
          "Sky USDS docs state fixed1:1 bidirectional converter with no fee; sUSDS docs describe ERC-4626 shares. USDS upgradeable proxy is explicit.",
          "Sky collateral overview labels data as12June2026 and lists diversified categories; article does not repeat promotional safety/ranking claims.50×1.02=51 illustration checked."
        ]
      }
    },
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      "id": "dai-and-usds-fact-backing-scope",
      "articleSlug": "dai-and-usds",
      "statement": "Backing scope: The June 2026 Sky description includes multiple collateral and investment categories.",
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        "notes": [
          "Sky USDS docs state fixed1:1 bidirectional converter with no fee; sUSDS docs describe ERC-4626 shares. USDS upgradeable proxy is explicit.",
          "Sky collateral overview labels data as12June2026 and lists diversified categories; article does not repeat promotional safety/ranking claims.50×1.02=51 illustration checked."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "sky-usds",
      "label": "USDS and DAI USDS Converter",
      "publisher": "Sky Protocol",
      "url": "https://developers.skyeco.com/protocol/tokens/usds/",
      "note": "1:1 bidirectional conversion, no route fee, upgradeable USDS token.",
      "checkedAt": "2026-10-02T14:38:41.077417+00:00",
      "locator": "Overview; DAI USDS Converter",
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      "recordId": "source-ef2407e0023c001f",
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    {
      "id": "sky-susds",
      "label": "sUSDS: Savings USDS",
      "publisher": "Sky Protocol",
      "url": "https://developers.skyeco.com/protocol/tokens/susds/",
      "note": "ERC-4626 savings wrapper distinct from USDS.",
      "checkedAt": "2026-10-02T14:38:42.003903+00:00",
      "locator": "Overview",
      "version": "Response SHA-256 e0f935001eff236fd9c0eab6b964e2e3a35efb98b5a1c24c17d40267ec586b4a",
      "recordId": "source-99c494fb0f9d448b",
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    {
      "id": "sky-vat",
      "label": "Vat: Core Accounting",
      "publisher": "Sky Protocol",
      "url": "https://developers.skyeco.com/protocol/core/vat/",
      "note": "Collateralized issuance, debt accounting, oracle and governance dependencies.",
      "checkedAt": "2026-10-02T14:38:38.888971+00:00",
      "locator": "Vault Management; Failure Modes; Accounting",
      "version": "Response SHA-256 78db21089399df6c25df458f98d0129333f3e72138de185b96610fe82f0a74dd",
      "recordId": "source-69368320969c12c1",
      "contentSha256": null
    },
    {
      "id": "sky-collateral",
      "label": "What is USDS?",
      "publisher": "Sky.money / Skybase International",
      "url": "https://sky.money/blog/what-is-usds",
      "note": "Dated 2026-06-12 description of diversified collateral and separate savings product; marketing assertions not independently audited.",
      "checkedAt": "2026-10-02T14:38:42.654541+00:00",
      "locator": "How USDS holds its peg; Protocol Collateral; Does USDS generate yield?",
      "version": "Response SHA-256 3726cdd7e7b5e102192c9e0df4f87d2c7fc6dda8b0259152430012681ef85c1d",
      "recordId": "source-e789fc9fcc6cbef2",
      "contentSha256": null
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    {
      "id": "sky-liquidation",
      "label": "Collateral Liquidation",
      "publisher": "Sky Protocol",
      "url": "https://developers.skyeco.com/protocol/vaults/collateral-liquidation/",
      "note": "Liquidation via collateral sales, parameters and failure modes.",
      "checkedAt": "2026-10-02T14:38:38.896399+00:00",
      "locator": "Liquidation 2.0 module; Auctions",
      "version": "Response SHA-256 87c3e3e29ccffdca8cf63e766c29458e2bd58033852894bb347f9f7fdae53a5d",
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  "related": {
    "articles": [
      "crypto-backed-stablecoins",
      "stablecoin-yield-sources",
      "stablecoin-freezes-issuer-control",
      "what-is-usdc",
      "what-is-susds"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “DAI and USDS: connected tokens in the Sky system.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/dai-and-usds/"
}