Is sDAI Safe?
Risk Grade: B+ (19/100)
sDAI is rated as moderate risk — some novel mechanisms, generally well-understood.
Low risk — battle-tested MakerDAO savings product with no novel mechanics, but yield depends entirely on governance decisions and DAI peg stability backed increasingly by real-world assets
sDAI is the simplest way to earn yield on the DAI stablecoin. You deposit DAI into MakerDAO's savings module and receive sDAI, a token that automatically grows in value as interest accrues. Currently earning about 3.5% APY, funded by MakerDAO's revenue from lending and real-world assets like US Treasury bills. With ~$85M TVL, it is a well-established, low-complexity DeFi product.
TVL
$85M
Mechanisms
5
Interactions
4
Value Grade
D-
Key Risks for sDAI Users
The interest rate on sDAI is controlled by MakerDAO governance and can change at any time. It has been as high as 8% and as low as 0%. You have no guarantee of any specific yield
sDAI is only as safe as DAI itself. If DAI loses its peg due to problems with its collateral (over 50% is now real-world assets like Treasuries), your sDAI will be worth less than expected
If you use sDAI as collateral in lending protocols and DAI depegs, you could face liquidation even though sDAI is supposed to be a safe, yield-bearing asset
Top Risk Factors
- •sDAI yield is entirely dependent on the Dai Savings Rate (DSR) set by MakerDAO/Sky governance — rate changes directly affect user returns with no notice requirement
- •Underlying DAI stablecoin peg risk: if DAI depegs due to MakerDAO collateral failures, sDAI inherits the same loss
- •RWA-heavy backing of DAI introduces counterparty risk from off-chain custodians and traditional finance intermediaries
Risk Score Breakdown
sDAI's highest risk area is Vitality Risk (6/10). Here's how each dimension contributes to the overall 19/100 score:
Read the Full sDAI Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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