This paper presents the possibility of employing non-linear low-resolution DACs in the feedback paths of multi-bit second-order Sigma-Delta modulators. The proposed technique is particularly attractive in applications such as hearing aids, requiring a very large dynamic range and medium signal-to-noise-plus-distortion-ratio. As demonstrated through simulated results in which noise and mismatch effects are included, for the same over-sampling ratio, improvements in the order of 6-to-9 dB in the dynamic range can be achieved when comparing with the same topology employing linear-DACs.