Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
As the crypto bull market possibly returns, it’s exciting to see DeFi trailblazers like MakerDAO continuing to grow and innovate.
One of the more popular yields during the end of this bear market was brought to us by Maker–called sDAI. In May 2023, Maker launched Spark Protocol which allows users to supply or borrow ETH, stETH, DAI, and savings DAI at competitive rates.
Spark is a fork of Aave so the launch was well received given the familiarity of the DeFi UX. One new yield-bearing token called sDAI, short for Savings DAI, represents DAI deposited in Maker's DAI Saving Rate (DSR) module.
The DAI Savings Rate (DSR) is an addition to the Maker Protocol that allows any DAI holder to earn savings in DAI. This yield is generated by the revenue Maker generates on users who mint DAI as well as the RWAs it holds. As of this writing, the DSR is currently paying 5% APY.
Separate from MakerDAO and Spark, there was a fork of Aave launched on xDai Chain in 2021 cleverly called Agave. Like Aave, Agave is a decentralized non-custodial money market protocol where users can participate by borrowing or lending money through the application.
Agave is a fork of Aave, built by the 1Hive community and deployed on the xDai chain where network fees are much lower. Like on Aave, Agave users can deposit tokens where they receive an aToken in return. The aToken will accrue interest for token holders. Additionally, users can enable their