> For the complete documentation index, see [llms.txt](https://docs.aevo.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aevo.xyz/aevo-products/aevo-exchange/technical-architecture/collateral-framework/aeusd.md).

# aeUSD

#### *NOTE: we are going to migrate from sDAI to the new sUSDS soon.*

Users can convert their USDC to aeUSD on Aevo, fee-free.

aeUSD is an ERC-4626 asset built on Aevo L2 which is a composition of USDC and [sDAI](https://docs.sparkprotocol.io/faq/dai-savings-rate-dsr#what-is-sdai). aeUSD is an exchange-whitelisted collateral asset with a 100% collateral factor, allowing users, market-makers, and strategies to earn sDAI APY on their **margin.**

aeUSD yield is generated by depositing into Maker DAO’s [Dai Savings Rate](https://docs.sparkprotocol.io/faq/dai-savings-rate-dsr#what-is-dsr) (DSR) module, and receiving sDAI. See Maker's [dashboard](https://makerburn.com/#/dsr) and [gov proposal](https://forum.makerdao.com/t/mip102c2-sp16-mip-amendment-subproposal/21579/2) for more.