sDAI

sDAI receives a B+ risk grade (19/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for sDAI are: (1) 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 (2) 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 (3) 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

sDAI scores 19/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 3/20, Oracle Surface: 1/10, Documentation Gaps: 1/10, Track Record: 3/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.

Among 112 rated Yield protocols on Hindenrank, sDAI ranks #2 by safety (lowest risk score = safest). Its 19/100 risk score and B+ grade place it among the safer Yield protocols.

sDAI scores 3/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.