Code-based cryptography is one of the main areas of interest for NIST's Post-Quantum Cryptography Standardization call. In this paper, we introduce DAGS, a Key Encapsulation Mechanism (KEM) based on quasi-dyadic generalized Srivastava codes. The scheme is proved to be IND-CCA secure in both random oracle model and quantum random oracle model. We believe that DAGS will offer competitive performance, especially when compared with other existing code-based schemes, and represent a valid candidate for post-quantum standardization. © 2018 Walter de Gruyter GmbH, Berlin/Boston.