In the app, this product appears as Euro Savings. On Picnic's web version, it appears under Passive Income as Income in Euro (EURe). Both names refer to the EURe strategy described in this article.
Summary
- Asset: EURe, a stablecoin linked to the value of the euro.
- Network: Gnosis.
- Protocol: Aave.
- Yield: variable, generated by lending EURe through Aave.
- Withdrawal: shown as immediate under normal operating and liquidity conditions.
- Classification shown in Passive Income: low risk and low volatility. This does not mean the strategy is risk-free.
Important: Euro Savings is not a savings account or any other bank product, it does not have a deposit guarantee, and it is not Protected Savings. It does not include the OpenCover/Nexus Mutual protocol coverage.
How it works
When you invest, your EURe is deposited into Aave, a decentralized finance protocol that connects people who supply assets with people who borrow them. The transaction takes place on the Gnosis network.
Loans on Aave are overcollateralized: anyone borrowing EURe must keep collateral in the protocol worth more than the loan. This mechanism reduces default risk but does not eliminate the strategy's other risks.
You can track your position through Euro Savings in the app or on the Income in Euro (EURe) page on the web version.
Where the yield comes from
The yield comes from interest paid by people who borrow EURe through Aave. The rate changes according to supply and demand in the protocol's lending market.
The percentage shown in Picnic is an annualized estimate called APY, calculated using the current rate. It can rise or fall over time. Therefore:
- the yield is not fixed;
- there is no guaranteed minimum yield;
- the rate may fall, including to near zero;
- past returns do not guarantee future returns.
Fees
Picnic charges a fee of 0.1% of the amount invested, deducted when you invest. Picnic does not charge a management or performance fee.
Before confirming, review the final screen: it shows the costs that apply to your transaction. Asset conversions or transfers between networks, when required, may have their own costs.
How withdrawals work
You can request a withdrawal at any time. Under normal conditions, the product shows withdrawals as immediate, but completion depends on the availability of Gnosis, Aave, the smart contracts, and transaction liquidity.
During congestion, maintenance, low liquidity, or provider instability, a withdrawal may take longer or become temporarily unavailable.
Main risks
Every decentralized finance investment involves risks and may result in a partial or total loss of the amount invested. The main risks of this strategy are:
- Loss of peg: EURe may stop tracking the value of the euro.
- Protocol and smart contracts: failures, attacks, oracle errors, or problems with Aave's liquidation mechanism may affect your balance or withdrawal.
- Gnosis network: congestion, outages, or network failures may delay transactions.
- Liquidity: there may not be enough liquidity to complete a withdrawal immediately.
- Variable yield: the rate depends on activity in Aave's lending market.
- Regulatory changes: changes to rules governing cryptoassets, stablecoins, and euro services may affect the product.
Frequently asked questions
Is this the same as Protected Savings?
No. Protected Savings is a different product with a different strategy and its own protocol coverage. Euro Savings does not have that coverage.
Is the yield guaranteed?
No. The APY changes with Aave's lending market and may change at any time.
Does overcollateralization eliminate risk?
No. Overcollateralization reduces borrower credit risk, but smart contract, oracle, liquidation, liquidity, network, and EURe peg risks remain.
Where can I see the current rate?
The current rate appears on the product screen before you invest and on your position page. Always consider the rate shown at that moment, as it is variable.
This article is for informational purposes only and does not constitute investment advice. Consider whether the risks are appropriate for your profile before investing.