# xDAI bridge migration is completed Source: https://forum.gnosis.io/t/gip-118-should-sdai-be-replaced-by-susds-in-the-bridge/9354/20 Kiwi News: https://news.kiwistand.com/stories/xDAI-bridge-migration-is-completed?index=0x690f1f59448981934ec750e90b572e82d565c415e4d8997931b8013cea278eb3b2f212a8 Submitted by misha on 2025-11-08 UTC, 1 upvote, 0 comments ## Summary Gnosis Chain proposes replacing the sDAI held in its xDAI bridge on Ethereum with sUSDS to capture a higher yield, according to GIP-118, a draft by Philippe Schommers. The proposal says the Sky Savings Rate is typically 1% higher than the DAI Savings Rate, with the SSR at 12.5% and the DSR at 11.5%. The upgrade would also add support for depositing USDS alongside DAI, and withdrawals would switch from DAI to USDS. The proposal notes the trade-off that USDS has a blacklist function, which DAI lacks, and it flags possible effects on smart contracts that rely on receiving DAI from the bridge. ## Article GIP-118: Should sDAI be replaced by sUSDS in the bridge? GIP: 118 title: Should sDAI be replaced by sUSDS in the bridge? author: Philippe Schommers status: Draft type: Meta created: 2024-12-09 duration: ~1 month funding: none Executive Summary Since MakerDAO became Sky and started issuing their USDS stablecoin, they have also introduced the Sky Savings Rate (SSR), which is now typically 1% higher than the DAI Savings Rate (DSR). This proposal aims to replace the current sDAI in the bridge on Ethereum’s side with sUSDS in order to increase the yield for the Gnosis sDAI. The native Gnosis Chain token would remain xDAI. Introduction Gnosis Chain has used xDAI, which is DAI bridged from mainnet, as its native token since inception. However, with the recent changes by MakerDAO / Sky, and their push for USDS instead of DAI, it has become clear that we need to stay current with the broader ecosystem in order to remain relevant and get access to the best yield. Proposed Changes The bridge would require an upgrade, that would include: Swapping all the sDAI currently held by the bridge to sUSDS Similarly to an upgrade made last year (Deposit DAI of the xDAI bridge in sDAI vault from Spark) Adding support for depositing USDS instead in addition to DAI DAI would get swapped 1:1 for USDS and then sUSDS in the bridge Replacing the currency for withdrawal from DAI to USDS on Ethereum As an alternative, we could also introduce an option to automatically swap back to DAI instead of USDS, although this might incur a fee later down the line. Impact and Benefits The main benefit is that we would get higher yield (typically 1% more) on the stablecoins in our bridge. Currently, the SSR is at 12.5%, while the DSR is at 11.5%. The main impacts are: We would be trusting USDS, which has a blacklist function, instead of DAI, which is more neutral. However, one could argue that the trust assumptions are similar, as the same company ultimately manages the underlying assets. It would also be an extremely bad precedent for them to blacklist a bridge. Users that bridged DAI into Gnosis would now be forced to withdraw USDS. This could also potentially impact smart contracts, that could rely on the bridge to provide them with DAI instead of USDS, which could result in them breaking. A thorough analysis will be conducted beforehand to make sure that no smart contract currently relies on this. Implementation Plan Make sure that no smart contract relies on getting DAI from the bridge rather than a different token (in this case USDS) Implement and test a bridge upgrade that covers the proposed changes Submit the upgrade to the bridge signers Risks and Challenges The main challenge is to make sure that the community agrees on this change, which is why we’re gauging interest with this GIP. Obviously, there’s always a risk in deploying and upgrading smart contracts, but our team is experienced and has successfully implemented many such upgrades. All changes will of course be audited and tested thoroughly on Chiado. Team / Organization This would mostly be taken care of by the bridge team. Conclusion We believe that it is time to leave DAI behind in favor of USDS, which is now being pushed by Sky, in order to benefit from the higher yield on sUSDS in comparison to sDAI. Gnosis Snapshot Phase 2 Proposals: Please ignore this section, and leave as is. It is used for Phase 3 proposals. Phase 3 Proposals: Add a link to the corresponding Gnosis Snapshot poll you’ve created.