What to do with your DAI now that Binance and KuCoin have swapped it for USDS

DAI and USDS are the two US dollar stablecoins under the Sky protocol, and the protocol provides a converter between them. Sky's developer docs say the DAI USDS converter deployed on Ethereum converts between the two at a fixed 1:1 ratio, in both directions, with no fees, and that fees cannot be switched on for it later. DAI in an on-chain wallet that you convert to USDS can be converted back at the same 1:1.

The two token contracts differ as well. According to the Sky docs, DAI is the ERC-20 token from the original Multi-Collateral Dai system and supports signature-based approvals through permit. USDS is also an ERC-20. On top of permit it supports EIP-1271 signature validation, and the contract is built to be upgradeable, using the UUPS pattern and ERC-1967 proxy storage.

What happens inside an exchange account is up to the platform. Under Binance's swap announcement, DAI that was in a Spot Account when the swap ran in April 2026, including DAI redeemed there from Simple Earn, was swapped at 1 DAI = 1 USDS; DAI in margin and Portfolio Margin accounts was dealt with separately, as set out under “Where the DAI in your Binance account went” below. DAI took on the USDS ticker on Binance, DAI deposits were suspended ahead of the swap, and DAI withdrawals are no longer supported once it is complete. KuCoin's announcement likewise describes an automatic 1:1 conversion. DAI you held in Spot or Simple Earn at Binance, or in a KuCoin spot account, now shows up as USDS, and DAI still sitting in your own wallet shouldn't be sent straight to either exchange.

Swapping between DAI and USDS with Sky's official converter

On the USDS page of the Sky Protocol docs, the Details under “DAI USDS Converter @ Ethereum” read: “Converts DAI to USDS at a fixed ratio of 1:1 and vice versa. No fees assessed. Fees cannot be enabled on this route in the future.” A fixed ratio, both directions, no fee, and no way to add a fee to this route later. The overview on the same page adds that the converter provides “a seamless way to exchange between the two tokens without any additional restrictions”.

“No fees” refers to the conversion step itself. Calling any contract on Ethereum costs network gas, whatever the converter does or doesn't charge. On a small DAI balance, gas can take up a large share of the amount, so look at the gas estimate in your wallet before deciding.

The Deployments part of that page has two sections, one for the USDS token and one for the converter, each with a “Deployment Addresses” entry. The only converter deployment the docs list is on Ethereum. Whether DAI on another chain has to be brought back to Ethereum first depends on that chain's own bridge and documentation.

Who issues USDS, and whether its contract can be upgraded

USDS and DAI are both the Sky protocol's own tokens: in the Sky Protocol docs, USDS, sUSDS, stUSDS, SKY and Dai all sit under the same “Tokens” category. How DAI went from Single-Collateral to Multi-Collateral Dai in the Maker years is laid out year by year in Twelve years of stablecoins, from Realcoin to MiCA.

The USDS page describes the contract itself as:

• ERC-20 compliant;
• extended with permit, so an approval can be granted with a single signature instead of a separate approve transaction;
• supporting EIP-1271 smart contract signature validation, so multisigs and other contract wallets can authorize by signature too.

The same page says the token is “designed with upgradeability in mind”, using the UUPS pattern and ERC-1967 proxy storage standards. With a proxy contract, the address users interact with stays the same while the logic behind it can be replaced with a new version. Who can initiate an upgrade, and which steps it has to go through, is covered in the docs' “Governance” section (the Chief, Pause and Spell pages, among others). If you hold USDS and care whether the contract can change, that is the place to start reading.

Binance's DAI-to-USDS swap timeline (UTC)

The notice in Binance's announcement center is titled “Binance Will Support the Dai (DAI) Token Swap and Rebranding to USDS (USDS)”. These are the times in it that affect an ordinary account holder:

On the POL network item, the announcement's wording is: “After this time, any DAI sent via the POL (Polygon POS) network will not be credited and may lead to asset loss.” If you sent DAI to Binance over Polygon, compare the time of your transfer with this cutoff to see which side of it you were on.

As for when USDS withdrawals open, the announcement only says Binance will make a separate announcement after the event is completed. Before trying to withdraw USDS, look for follow-up USDS notices in the announcement center, then check the withdrawal page for the networks USDS currently supports.

Where the DAI in your Binance account went

The announcement handled DAI differently depending on which Binance product it was in, and it didn't always end up as the same asset:

DAI left in Portfolio Margin that wasn't moved to Spot in time was sold for USDT. If looking for USDS turns up nothing, check your Portfolio Margin balance for a USDT credit around March 31.

Simple Earn resubscription is proportional. Say you had 40 DAI in Locked Products and 60 DAI in Flexible, sold 20 after the redemption to Spot, and were left with 80 DAI, which became 80 USDS. The resubscribed amounts are then 80 × 40 ÷ 100 = 32 USDS in Locked and 80 × 60 ÷ 100 = 48 USDS in Flexible. If the balance didn't change, everything is resubscribed 1:1 as it was.

The lock period on Locked Products restarts with the automatic subscription. A 15-day product with 3 days left before expiry, for example, is locked for a full 15 days again after resubscription. Rewards on the new positions are paid to your Spot Account the day after they start accruing.

If the numbers don't reconcile, go through your account records for April 6 to April 9 line by line, match each DAI debit to a USDS credit, and take those entries to Binance support.

How sUSDS relates to USDS when it comes to savings yield

In the Sky docs' token list, USDS is followed directly by sUSDS (Savings USDS) and stUSDS (Staked USDS), each with a page of its own. The docs treat sUSDS as a token in its own right, so USDS and sUSDS in a wallet are two different assets, and the yield terms for each are on their respective doc pages. According to the sUSDS page, it is a savings token: you deposit USDS and receive sUSDS, and to get out you exchange sUSDS back for USDS. Deposits and withdrawals go through an ERC-4626 vault interface, and that step carries no fee. What backs DAI and USDS in the first place is covered in The four stablecoin types compared.

For the current savings rate, check Sky's official app.

USDS Flexible and Locked Products in Binance Simple Earn are Binance's own earn products; how rewards are calculated and when you can redeem is set by the rules on that product's page. They run on a separate track from on-chain sUSDS: in one you hand your coins to a platform, in the other you hold a protocol token in your own wallet, and the risks come from different places.

KuCoin converted DAI to USDS automatically from a snapshot

KuCoin's announcement says the DAI-to-USDS conversion on its platform happens automatically. The 2026 schedule was:

• April 3, 04:00 UTC: DAI deposits and withdrawals closed;
• April 3, 06:00 UTC: trading closed for USDT/DAI, ETH/DAI and BTC/DAI;
• April 3, 10:00 UTC: snapshot of users' DAI holdings, followed by conversion at 1 old DAI = 1 new USDS.

The snapshot covers DAI balances in the spot account (funding account plus trading account). DAI that was in a pending deposit or withdrawal at the moment of the snapshot is not counted toward your balance; if that applies to you, take the deposit or withdrawal record to KuCoin support. According to the announcement, USDS deposits, withdrawals and the USDT/USDS pair open after the conversion is complete, with a further notice to follow. Once DAI deposits, withdrawals and trading closed, KuCoin stopped supporting DAI, and it says it cannot cover losses for users who deposit DAI after that.

What to do before sending leftover wallet DAI to an exchange

DAI in your own wallet isn't affected by exchange announcements, and leaving it where it is causes no problem. If you want to move it to Binance or KuCoin, go in this order:

1. Confirm which chain the DAI is on. The DAI USDS converter in the Sky docs is on Ethereum; for DAI on another chain, first work out how to get it back to Ethereum.
2. On Ethereum, convert DAI to USDS through the converter: 1:1, no converter fee, gas only. Check the contract address against “Deployment Addresses” on the USDS page of the Sky docs.
3. Open the exchange's deposit page, select USDS, and see which networks it currently supports. Send only once that matches the chain your USDS is on. On a first transfer you can send a small amount, wait for it to arrive, then send the rest.
4. Don't deposit DAI itself. Binance's announcement suspended DAI deposits and, for the Polygon route, states that DAI sent after the cutoff will not be credited; KuCoin's says it cannot cover losses on DAI deposited after its cutoff.

If you plan to keep using DAI on-chain, there's no need to convert in a hurry because of what exchanges did: the converter is open in both directions, and whenever you do need USDS the rate is still 1:1.

FAQ