# 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 %}

{% hint style="info" %}

## 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 %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.mu.exchange/getting-started/getting-started-on-gnosis-chain/what-is-usdxdai-and-usdsdai.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.