This guide explains in plain language how Caixinha Protegida (“Protected Savings”) works, how the yield is generated, how your money is protected, and what the risks are. It complements — and does not replace — the Caixinha Protegida Terms and Conditions, which are the product's official document.
Summary
- Caixinha Protegida is a Picnic product where you hold digital dollars (or digital euros) and earn yield on them, automatically, every day.
- The yield comes from an interest program paid by Sky/Maker, one of the largest and oldest decentralized finance protocols on the internet, with a 7+ year history.
- Your money stays in your own wallet at all times. Picnic is just the app that connects you to this yield — it never holds your assets.
- In addition to the yield, your balance has protocol coverage arranged by OpenCover with Nexus Mutual: if something seriously goes wrong with the digital dollar you are using, part of the value can be recovered.
- The yield is variable and the coverage is not regulated insurance. This is explained in detail below.
Read before depositing: Caixinha Protegida is not a savings account, is not a CD, and is not insured by the FDIC (US), FSCS (UK) or FGC (Brazil). The yield is variable and may fall to zero. The coverage protects only against a specific scenario (explained in section 4), and there are risks under which you may lose part or all of your capital. If you are not familiar with digital money, please read this guide carefully before depositing.
1. What a “digital dollar” is (and why it earns yield)
Caixinha uses two kinds of digital money — technically called stablecoins, which are simply digital versions of traditional currencies:
- USDC.e — the digital dollar. 1 USDC.e is worth ~1 US dollar.
- EURe — the digital euro. 1 EURe is worth ~1 euro.
A stablecoin is a currency that exists on the internet, issued by a company or protocol, that commits to keeping its price pegged to a reference currency. For a deeper introduction, Nubank has a good overview of stablecoins.
Where do “DAI” and “sDAI” come in?
When you deposit into the Caixinha, the app automatically converts your digital dollars/euros into two things, in this order:
- DAI — another version of the digital dollar, issued by the Sky/Maker protocol (formerly known as MakerDAO). DAI has existed for more than 7 years and is one of the most established digital dollars on the internet. More about DAI on Coinext.
A note on naming: The protocol that issues DAI went through a rebrand in 2024 — what was MakerDAO is now called Sky, and the digital dollar that was DAI has been renamed to USDS on the main network (Ethereum). In practice, DAI and USDS are essentially the same asset, maintained by the same protocol with the same underlying mechanics. However, on Gnosis Chain — the network used by Picnic — the community decided to keep the original DAI and sDAI names, without adopting the rebrand. That's why inside Picnic you'll see DAI and sDAI, while elsewhere on the internet the same asset may appear as USDS and sUSDS. They are the same thing, just with different names depending on the network.
- sDAI — it is the same DAI, but parked in an interest-bearing account. Think of it as holding your digital dollar in the protocol's “savings account.” Those interest payments come from a program called DSR — Dai Savings Rate, which is Sky/Maker's “savings rate.”
In practice: your balance in USDC.e or EURe goes in and becomes sDAI; while it stays there, it grows on its own, every day.
Simple analogy: imagine you have a cash dollar (USDC.e). You put that dollar into the “savings account” of an internet bank (Sky/Maker). The bank hands you a receipt for that deposit — this receipt is sDAI. As days go by, the receipt becomes worth more than 1 dollar, because it has earned interest. When you withdraw, you hand back the receipt and receive your dollars plus the accumulated interest.
Technically, the sDAI used here lives on a network called Gnosis Chain (a network specialized in payments and financial applications, with very low fees). The sDAI contract address on that network is 0xaf204776c7245bF4147c2612BF6e5972Ee483701 — you can inspect the full history on public explorers like Gnosisscan.
2. How the yield works
The Caixinha yield is variable — it changes over time as Sky/Maker's own governance decides. There is no fixed rate and no minimum return guarantee.
The math behind it:
Net yield shown in the app = Sky/Maker's interest rate (DSR) − OpenCover coverage cost − Picnic commission (when applicable)
You don't need to do this math. All of it is already built into the number shown in the app. Repeating, because this is important:
The yield you see in the app is already net of OpenCover's coverage cost. When Picnic starts charging a commission, that will also already be deducted. You never pay a separate fee — the number on the screen is the number you actually earn.
- The rate can go up or down at any time, including down to zero, if Sky/Maker's governance decides. Past yields are no guarantee of future returns.
- The yield is continuous: your balance grows in real time, every day, automatically. You do not need to withdraw and re-invest.
- Picnic currently charges no commission. When we do start charging, the cost will already be included in the net yield — the displayed number is always the final value for you.
3. How your money is protected
Caixinha has three protection layers working in parallel.
3.1. You own your money (self-custody)
At Picnic, your balance lives in a digital wallet that only you control, secured by a biometric key on your phone (the passkey). In plain language: your money is in a safe inside your own phone, and only your fingerprint/Face ID can open it.
This is called self-custody: Picnic never has access to your assets. If Picnic ceased to exist tomorrow, your money would still be accessible directly from your wallet — you would just use any compatible tool.
3.2. The underlying asset is solid
DAI/sDAI is one of the oldest and most established products in decentralized finance, with over 7 years of history and billions of dollars in use. The Sky/Maker protocol is continuously audited and has distributed governance.
3.3. Protocol coverage: OpenCover × Nexus Mutual
This is the layer that differs the most from traditional financial products — and deserves attention.
OpenCover is a manager that arranges coverage for digital-money vaults. It buys this coverage from Nexus Mutual — a collective protection fund (technically a mutual, following the tradition of old protection clubs that evolved into modern insurance). More on mutual insurance on Wikipedia.
What the coverage protects against:
If the digital dollar (sDAI) you are using loses 10% or more of its reference value for 7 or more consecutive days, OpenCover can trigger the compensation process.
Technically, this is called a depeg — when a stablecoin stops being pegged to its reference currency. More on what depegging means.
This may sound like a narrow protection, but in practice it is broad. That's because most of the bad things that can happen to a digital currency — an attack on the protocol, a serious bug in the contract, a collapse of the collateral backing DAI, a systemic failure — tend to manifest as a depeg. In other words, even when the root cause is technical, the effect that triggers the coverage is the price drop.
The specific parameters of this coverage are in the Annex — sDAI Vault Cover. In plain language:
| Covered asset | sDAI (the interest-bearing digital dollar) on Gnosis Chain |
|---|---|
| How much it must drop to trigger | 10% below the reference value |
| How long it must stay below | 7 consecutive days |
| Value recovered per sDAI | 0.975 per unit (i.e., a technical 2.5% haircut) |
| Deductible | 5% of the covered amount stays with the user |
| Maximum estimated recovery | ~92.5% of deposited capital in a total-depeg scenario |
| Estimated time to payout | 14 to 44+ days after the depeg event begins |
Important to understand: this coverage is not regulated insurance (like what is offered by traditional insurance companies and supervised by regulators such as the NAIC in the US or SUSEP in Brazil). It is discretionary coverage: the final decision about whether to pay depends on a vote of Nexus Mutual's claim assessors. OpenCover is the party that triggers the process — you, as a user, do not file a claim directly.
The coverage is also proportional: the total covered amount tracks the total deposited in the product. If at any point the total deposited exceeds the total covered, recovery in case of an event would be reduced proportionally.
4. What is covered and what is not
| Scenario | Covered? | Note |
|---|---|---|
| The digital dollar (sDAI) loses 10% or more of its value for 7 or more days | YES | Regardless of the cause — attack, bug, systemic failure. Subject to the 5% deductible and 2.5% technical haircut. |
| A technical failure or attack that causes a depeg above those thresholds | YES | Even if the cause is different, the effect (depeg) triggers the coverage. |
| A small price fluctuation (less than 10%) or short one (less than 7 days) | No | Does not meet the coverage parameters. |
| Yield drops, or Sky/Maker governance zeroes out the rate | No | Not a price event — a rate change. The product guarantees no minimum rate. |
| Lost phone, lost passkey, or a phishing/scam victim | No | User's responsibility — they hold custody of their own assets. |
| General market downturn, where the digital dollar keeps its peg | No | Not a covered event. |
| Picnic app failure or any interface-layer failure | No | Your assets remain in your wallet — you can access them through any other compatible means. |
5. Key risks
Before depositing, understand the risks you are accepting. This is the most important section of this guide.
Yield risk
- The rate can be reduced at any time by Sky/Maker governance, including to zero.
- The coverage cost may rise, reducing the net yield.
- There is no guarantee of a minimum yield at any time.
Protocol risk
- There may be vulnerabilities in the Sky/Maker, OpenCover, or Gnosis Chain contracts that cause loss or unavailability of your balance.
- Most of those scenarios, if serious, tend to cause a depeg and would therefore be covered — but there is no absolute guarantee.
Coverage risk
- The decision on a compensation claim is discretionary on Nexus Mutual's side and can be denied.
- Strict deadlines apply: the claim must be submitted within 30 days after the depeg ends, and, once approved, the payout must be redeemed within 30 days. Missing these deadlines (for any reason) extinguishes the right.
- The 5% deductible and 2.5% technical haircut reduce the final amount received even in approved cases.
Custody risk
- Losing your phone and access to your biometric key can result in loss of access to your funds.
- Digital-money transactions are irreversible. There is no traditional “chargeback.”
- Scams and phishing are the user's responsibility. Nobody from Picnic will ever ask for your key.
6. How to deposit and withdraw
Deposit
- Open Caixinha Protegida in the Picnic app.
- Pick an amount in USDC.e (digital dollar) or EURe (digital euro).
- Review the summary — current net yield and amount to deposit.
- Confirm with your biometric key (passkey). Conversion to the interest-bearing digital dollar (sDAI) happens automatically.
Deposits are almost instant and the yield starts accruing as soon as the transaction is confirmed.
Withdrawal
- Open Caixinha Protegida and tap Withdraw.
- Enter the amount.
- Confirm with your biometric key.
You can withdraw at any time. The value is automatically converted back to USDC.e or EURe.
Exception: if a depeg event is in progress, withdrawals may be temporarily suspended to preserve the right to coverage for all users. If this happens, Picnic will communicate it and provide instructions.
7. Fees
Today, the Caixinha has no additional Picnic fees. If and when we start charging, the cost will already be deducted from the net yield shown — you never pay a separate fee.
The only fees that may appear are small Gnosis Chain network fees (the cost of recording the transaction), typically under US$0.02 per operation.
8. Taxes
Yields on digital assets are subject to capital gains taxation in most jurisdictions. You are responsible for computing, reporting, and paying any taxes owed. Picnic provides transaction reports in the app but does not offer tax advice.
If in doubt, consult an accountant or tax attorney in your jurisdiction.
9. Caixinha Protegida × other products
| Attribute | Caixinha Protegida | Bank savings account | Certificate of Deposit (CD) |
|---|---|---|---|
| Who holds the money | You (self-custody) | Bank | Bank |
| Yield | Variable (Sky/Maker DSR) | Variable (bank's rate) | Fixed or indexed |
| Currency | Digital dollar or digital euro | Local fiat | Local fiat |
| Guarantee | Protocol coverage (limited, discretionary, not regulated insurance) | Government deposit insurance | Government deposit insurance |
| Liquidity | Withdraw at any time | Daily | Variable (often locked) |
| Main risk | Depeg, protocol failure, rate changes | Inflation, sovereign risk | Issuing bank risk |
Caixinha is not a replacement for a savings account or a CD — it is a different product, in a different currency, with a different risk profile. Think of it as a way to put your digital-dollar/euro balance to work, instead of letting it sit idle.
10. Frequently asked questions
Can I lose money?
Yes. In uncovered events (scams, lost phone without backup, or scenarios that do not trigger the coverage), you may lose part or all of your capital. Even in covered events, the 5% deductible and 2.5% technical haircut reduce the final amount.
How long does it take to receive an approved compensation?
At least 14 days after the depeg starts, and potentially 44+ days depending on Nexus Mutual's vote. After approval, the payout must be redeemed within 30 days or the right is lost.
Can I withdraw at any time?
Yes, under normal conditions. The only exception is during an ongoing depeg event — in that case, withdrawals are temporarily suspended to preserve the coverage.
Why does coverage “only” protect against a depeg?
Because, in practice, that is the final effect of most serious problems that can hit a digital currency — whether from attacks, technical failures, or collapsed collateral. Covering a depeg means covering the outcome of the scenarios that matter most.
What is Sky/Maker?
The protocol behind DAI (the digital dollar we use), one of the oldest and most audited in the decentralized finance industry. The protocol's governance sets the interest rate (DSR).
What is OpenCover?
A manager specialized in arranging coverage for digital-money products. It builds the structure, buys protection from Nexus Mutual, and, if an event occurs, files the compensation claim.
What is Nexus Mutual?
A collective protection fund (in the mutual-insurance tradition) that operates fully on the internet. Decisions on whether to pay compensations are made by a vote of the fund's claim assessors.
Why is the product called “Caixinha”?
Because it is a simple way to keep some money that grows every day — a little “piggy bank,” now in digital dollars/euros and with protocol coverage. (“Caixinha” is Portuguese for “little box” — a common term for a small stash of savings.)
11. Official documents
The documents below are the product's official source. If there is any conflict between this guide and the documents, the documents prevail:
- Terms and Conditions — Caixinha Protegida (Picnic)
- Vault Cover Terms (OpenCover × Nexus Mutual)
- Annex — sDAI Vault Cover (parameters of this product)
- OpenCover vault page
Need help? Reach out via chat inside the Picnic app or at help.usepicnic.com.