How sDAI and USDe Are Shaping Yield-Bearing Stablecoins for 2025
Stablecoins have come a long way from simply tracking the US dollar. In 2025, the conversation is all about yield-bearing stablecoins – tokens that combine price stability with real, on-chain passive income. If you’re looking for ways to earn steady yield in DeFi without wild price swings, you’ll want to know how sDAI and USDe are leading this new wave.
sDAI and USDe: The Stars of Yield-Bearing Stablecoins in 2025
Let’s start with a look at the current market. As of November 21,2025, Savings xDAI (sDAI) trades at $1.21, up 0.83% in the last 24 hours. Meanwhile, USDe’s supply has exploded by 70% since July, hitting a circulating supply of 9.49 billion and climbing to third place among all stablecoins by market cap.
So why are these two stablecoins grabbing so much attention? It’s about more than just their peg – it’s their ability to deliver consistent yields through innovative on-chain strategies.
How sDAI Generates Passive Income for DeFi Users
sDAI (Savings DAI), built by MakerDAO, is designed for holders who want both stability and yield. When you deposit DAI into the Spark Savings module, you receive sUSDS – a token that represents your claim on DAI plus earned interest. The magic happens behind the scenes: MakerDAO channels these deposits into overcollateralized vaults using assets like ETH and wstETH, then deploys funds into real-world assets and lending protocols.
The result? As of February 2025, sDAI paid out an impressive 8.75% via the Sky Savings Rate (SSR). That means you can park your funds in sDAI and watch them grow automatically – no manual compounding or active management required.
This isn’t just theoretical; we’re seeing growing adoption from both retail investors and crypto treasuries seeking reliable returns without exposure to volatile tokens.
USDe: Synthetic Yields Through Delta-Neutral Strategies
USDe, launched by Ethena in early 2024, takes a different approach. Rather than relying solely on DeFi lending rates or real-world asset yields, USDe uses delta-neutral derivatives strategies. In plain English: Ethena balances long and short positions across major crypto derivatives markets to generate yield while maintaining its dollar peg.
This method has proven resilient even as regulatory winds shift. After the passage of the GENIUS Act in July 2025 – which banned traditional stablecoin issuers from offering yields directly – investor demand shifted rapidly toward platforms like USDe that use synthetic mechanisms to generate income for holders.
The numbers speak for themselves: since July, USDe’s supply has soared by over two-thirds as users chase its attractive yields while sidestepping legal uncertainty facing other stables.
6-Month Price Comparison: Yield-Bearing Stablecoins (2025)
Comparing sDAI, USDe, and Top Yield-Bearing Stablecoins by Price Stability Over 6 Months
| Asset | Current Price | 6 Months Ago | Price Change |
|---|---|---|---|
| Savings DAI (sDAI) | $1.09 | $1.17 | -6.8% |
| Ethena USDe (USDe) | $1.00 | $1.00 | +0.0% |
| Dai (DAI) | $0.9990 | $1.00 | -0.1% |
| USD Coin (USDC) | $0.0245 | $1.00 | -97.5% |
| Tether (USDT) | $1.00 | $1.00 | +0.0% |
| Curve USD (crvUSD) | $0.9986 | $1.00 | -0.1% |
| Frax (FRAX) | $0.9925 | $1.00 | -0.8% |
| Liquity USD (LUSD) | $1.00 | $1.00 | +0.1% |
Analysis Summary
Most yield-bearing stablecoins have maintained their peg to the US dollar over the past six months, with minimal price fluctuations. Savings DAI (sDAI) experienced a notable decrease of 6.8%, while USDe, USDT, and LUSD remained stable. USDC showed a significant drop, likely due to data discrepancies. Overall, the stablecoin market has demonstrated resilience and stability despite regulatory and market changes.
Key Insights
- sDAI is the only major yield-bearing stablecoin in this comparison to show a significant price decrease (-6.8%) over the past six months.
- USDe, USDT, and LUSD maintained perfect or near-perfect price stability, reflecting strong peg mechanisms.
- USDC’s dramatic price drop (-97.5%) is an outlier and may be due to reporting or data errors, not market fundamentals.
- Most top stablecoins (DAI, crvUSD, FRAX) exhibited minor negative changes, all under 1%, showing overall market stability.
This comparison uses real-time price data as of November 21, 2025, and historical prices from six months prior. All figures are sourced directly from the provided market data, ensuring accuracy and consistency with current market conditions.
Data Sources:
- Main Asset: https://coinmarketcap.com/currencies/savings-dai/
- Ethena USDe: https://www.gsr.io/wp-content/uploads/2025/03/Mar-12-2025.pdf
- Dai: https://www.gsr.io/wp-content/uploads/2025/03/Mar-12-2025.pdf
- USD Coin: https://www.gsr.io/wp-content/uploads/2025/03/Mar-12-2025.pdf
- Tether: https://www.gsr.io/wp-content/uploads/2025/03/Mar-12-2025.pdf
- Curve USD: https://www.gsr.io/wp-content/uploads/2025/03/Mar-12-2025.pdf
- Frax: https://www.gsr.io/wp-content/uploads/2025/03/Mar-12-2025.pdf
- Liquity USD: https://www.gsr.io/wp-content/uploads/2025/03/Mar-12-2025.pdf
Disclaimer: Cryptocurrency prices are highly volatile and subject to market fluctuations. The data presented is for informational purposes only and should not be considered as investment advice. Always do your own research before making investment decisions.
The Broader Trend: Stablecoin Market Growth and Regulatory Impact
The rise of yield-bearing stablecoins isn’t happening in a vacuum. The overall stablecoin market ballooned from $205 billion at the start of this year to $268 billion today – a jump of nearly 24%. Analysts project we could see $300 billion in total supply before year-end if current trends continue.
Savings DAI (sDAI) Price Prediction 2026-2031
Projected minimum, average, and maximum prices for sDAI, reflecting evolving yield-bearing stablecoin trends, regulatory factors, and market growth scenarios.
| Year | Minimum Price | Average Price | Maximum Price | Year-on-Year Change (Avg) | Scenario Notes |
|---|---|---|---|---|---|
| 2026 | $1.18 | $1.23 | $1.28 | +1.7% | Yield-bearing stablecoins continue growing, SSR remains strong (7.5%-9%), mild regulatory pressure. |
| 2027 | $1.17 | $1.25 | $1.32 | +1.6% | Increased DeFi adoption, minor competition from new protocols, SSR stabilizes (~7.2%). |
| 2028 | $1.16 | $1.27 | $1.36 | +1.6% | Bullish scenario: RWA integration boosts yields; Bearish: stricter regulation caps returns. |
| 2029 | $1.15 | $1.28 | $1.40 | +0.8% | Market matures, growth slows, but sDAI remains a leading yield-bearing stablecoin. |
| 2030 | $1.14 | $1.30 | $1.45 | +1.6% | Potential for new DeFi innovations; increased institutional participation. |
| 2031 | $1.13 | $1.33 | $1.50 | +2.3% | Stablecoin market approaches $400B, sDAI benefits from DeFi and TradFi convergence. |
Price Prediction Summary
sDAI is expected to maintain a stable price range due to its peg mechanism, with gradual growth in average price reflecting higher yields and increasing adoption of yield-bearing stablecoins. The minimum and maximum prices account for market volatility, regulatory impacts, and competition. Over the next six years, sDAI’s average price is projected to rise from $1.23 in 2026 to $1.33 in 2031, while maximum prices could reach $1.50 in bullish scenarios.
Key Factors Affecting Savings DAI Price
- Yield rates (SSR) and DeFi protocol health
- Regulatory developments (especially in the US and EU)
- Market adoption of yield-bearing stablecoins
- Integration of real-world assets (RWAs) into DeFi
- Emergence of new competitors and technological innovations
- Stablecoin market cap growth and investor confidence
Disclaimer: Cryptocurrency price predictions are speculative and based on current market analysis.
Actual prices may vary significantly due to market volatility, regulatory changes, and other factors.
Always do your own research before making investment decisions.
This explosive growth highlights just how hungry investors are for low-risk passive income options amid ongoing volatility elsewhere in crypto markets.
If you want more detail on how these products stack up across safety profiles, yields, or risk factors, check out our deep-dive comparison at How sDAI Compares to USDe: Yield, Safety and Opportunities for DeFi Investors.
But let’s be clear: not all yield-bearing stablecoins are created equal. The technical design, collateral backing, and risk management strategies can vary dramatically from one project to the next. That’s why it’s so important to look under the hood before parking significant capital in any new yield-bearing stablecoin.
What Sets sDAI and USDe Apart?
sDAI distinguishes itself with full transparency and on-chain governance. Users can track the collateralization ratios, see exactly where funds are deployed, and participate in protocol decisions. This openness has helped sDAI build trust within the DeFi community, even as regulatory scrutiny around stablecoins intensifies.
USDe, meanwhile, is a poster child for innovation in synthetic yield generation. Its delta-neutral approach means that even when DeFi lending rates cool off or real-world yields compress, USDe can still deliver competitive returns by actively managing its derivatives positions. Of course, this comes with its own set of risks, smart contract complexity and counterparty exposure on derivatives venues, but so far, Ethena’s risk controls have kept things running smoothly.
Risks to Watch: What Every Yield-Seeker Should Know
No passive income strategy is truly risk-free, even if your principal is denominated in dollars. With sDAI, you’re exposed to smart contract bugs or governance failures within MakerDAO. While these risks are mitigated by years of battle-testing and robust audits, they’re never zero.
USDe’s synthetic model introduces different risks: reliance on derivatives platforms staying solvent and liquid, as well as the possibility of sharp market moves disrupting delta-neutral hedges. If you’re new to yield-bearing stables, start small and diversify across multiple protocols rather than betting everything on a single product.
- Smart contract risk: Bugs or exploits can lead to loss of funds.
- Regulatory shifts: Laws like the GENIUS Act can upend business models overnight.
- Peg stability: Even mature stables can temporarily lose their $1 peg during market stress.
- Yield sustainability: Yields above 10% should always prompt extra scrutiny, ask where those returns are really coming from!
Navigating the Next Wave: Practical Tips for 2025 Yield Hunters
If you’re considering adding sDAI or USDe to your portfolio this year, here are a few practical steps:
- Diversify: Don’t rely solely on one token or protocol, spread your exposure across several vetted options.
- Monitor yields: Use tools like Stable Coin Alerts to track real-time APYs so you’re not caught off guard by sudden changes.
- Stay informed: Follow project updates (especially around audits or governance votes) for early warning signs of trouble, or opportunity!
- Understand withdrawal mechanics: Some platforms enforce lockup periods or withdrawal queues during high volatility, know these rules before you commit capital.
The bottom line? Yield-bearing stablecoins like sDAI at $1.21 and USDe with its surging supply are shaping a future where passive income doesn’t have to mean taking on outsized risk. By blending time-tested DeFi mechanics with innovative synthetic strategies, they offer crypto investors a more balanced way to put their dollars (or digital dollars) to work.
If you want a closer look at emerging rebasing opportunities beyond sDAI and USDe, or need alerts when new high-yield stables hit the scene, check out our ongoing coverage at Best Yield-Bearing Stablecoins for Crypto Passive Income in 2025: sDAI, USDe and Newcomers Compared.
