> For the complete documentation index, see [llms.txt](https://docs.mu.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mu.exchange/getting-started/getting-started-on-gnosis-chain/what-is-usdxdai-and-usdsdai.md).

# What is $xDAI and $sDAI?

## <mark style="background-color:green;">TLDR: You need $xDAI and $sDAI to trade on Mu.</mark>

* $xDAI - the native token of the network, is a **stablecoin** and a **gas token.**
* $sDAI - an interest-bearing **stablecoin** usable as **collateral** for trade and liquidity on Mu.
  * Address: [0xaf204776c7245bF4147c2612BF6e5972Ee483701](https://gnosisscan.io/token/0xaf204776c7245bF4147c2612BF6e5972Ee483701)

## Detailed Explanation of $xDAI and $sDAI

A detailed explanation of what xDAI and sDAI are given here by the Gnosis Chain team:

{% embed url="<https://docs.gnosischain.com/about/tokens/xdai>" %}
Explanation of what xDai is.
{% endembed %}

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## What is sDAI?

[Spark Protocol's explanation](https://docs.sparkprotocol.io/faq/dai-savings-rate-dsr#what-is-sdai):&#x20;

Savings Dai (sDAI) is an ERC-4626 representation/wrapper of DAI in the Dai Savings Rate (DSR) module. sDAI allows users to deposit DAI to receive the yield generated by the Maker protocol while still being able to transfer, stake, lend, and use it in any way they want.

“Swapping” between DAI and sDAI does not need to be done via a DEX but can be achieved by depositing and withdrawing from the DSR module.
{% endhint %}