Binance has announced it will support the Dai (DAI) token swap and rebranding to USDS, as the Sky protocol, formerly known as MakerDAO, moves forward with its stablecoin migration. DAI holders on Binance should prepare for changes to deposits, withdrawals, and trading pairs as the exchange facilitates the transition.
Binance Confirms Support for the DAI-to-USDS Token Swap
Binance published a support announcement confirming it will handle the DAI-to-USDS token swap on behalf of users. The exchange has previously carried out similar token swaps for other projects, including the Fantom (FTM) to Sonic (S) migration, following a comparable process.
According to the announcement, Binance will automatically convert DAI balances held on the exchange to USDS at a 1:1 ratio. Users holding DAI in their Binance spot wallets are not required to take manual action for the core swap itself.
Deposits and withdrawals of DAI will be suspended ahead of the swap execution. Binance is expected to delist existing DAI trading pairs and replace them with corresponding USDS pairs once the migration is complete.
Traders who actively use DAI trading pairs on Binance should monitor for specific timeline updates from the exchange regarding when these pairs will transition.
Why DAI Is Being Rebranded to USDS: The Sky Protocol Transition
The token swap is not a Binance-initiated change. It originates from the Sky protocol, the entity formerly known as MakerDAO, which decided to rebrand its flagship stablecoin from DAI to USDS as part of a broader organizational transformation.
MakerDAO announced its rebrand to Sky in 2024, introducing USDS as the successor to DAI. The Sky protocol rebranding includes new governance tokens and a refreshed product suite, with USDS designed to serve the same role DAI has filled as a decentralized, overcollateralized stablecoin.
DAI has been one of the most widely used decentralized stablecoins in the crypto ecosystem, maintaining its peg through a system of collateralized debt positions. USDS retains the same underlying backing mechanism but operates under the new Sky brand.
Whether DAI will be fully deprecated or continue to exist in parallel with USDS remains a key question for holders. The Sky protocol's governance process has been driving the migration timeline, and exchanges like Binance are following the protocol's lead in supporting the transition.
What Binance DAI Holders Need to Do Before the Deadline
For most users, the swap will be handled automatically. Binance has indicated it will convert DAI holdings to USDS without requiring users to submit manual swap requests. This applies to DAI held in spot wallets on the exchange.
However, users who prefer to retain DAI or manage the swap themselves should withdraw their tokens before the deposit and withdrawal suspension begins. Once Binance halts DAI withdrawals, users will no longer have the option to move their DAI off the exchange ahead of the automatic conversion.
Holders with DAI allocated in Binance Earn products, margin positions, or other non-spot products should check whether those balances are included in the automatic swap. Binance's token swap announcement details typically specify which product categories are covered.
No fees are expected for the swap itself, consistent with how Binance has handled previous token migrations. The conversion ratio is 1 DAI to 1 USDS, preserving the dollar-pegged value of user holdings.
Binance users should bookmark the official support announcement page for the most current dates and instructions as the swap window approaches. The exchange typically provides advance notice of at least several days before suspending deposits and withdrawals for token migrations.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.