Passive Income is Picnic's decentralized finance (DeFi) investment area. It offers different ways to earn yield on digital Brazilian reais, digital dollars, digital euros, and other cryptoassets.
Picnic simplifies access to these strategies, while you retain self-custody of your position: transactions are made through your wallet, which interacts with smart contracts on blockchain networks.
What investments are available?
Passive Income brings together strategies using different assets, networks, and protocols. Available options may include:
- Income in Real with BRLA;
- Income in Euro with EURe;
- strategies using digital dollars, such as USDC, USDT, and DAI;
- lending, staking, and other cryptoasset yield strategies.
Available options may change. Before investing, the page for each strategy shows the asset, network, protocol, estimated yield, and risk level.
How is yield generated?
The source of yield depends on the strategy you choose. It may come, for example, from:
- interest paid by borrowers in DeFi protocols;
- staking rewards from a network;
- revenue and incentives distributed by a protocol.
The displayed return is an annualized estimate based on the strategy's current conditions. It is variable and does not guarantee future returns.
What is the difference between Passive Income and Savings?
Passive Income is the complete catalog of strategies available on Picnic's web product.
In the app, some of these strategies are presented as Savings products in a simplified experience. Therefore:
- the Savings products are part of Passive Income;
- not every Passive Income option will be available as a Savings product in the app;
- when the same strategy is available in both experiences, the investment, fees, yield, and risks are the same. Only the way it is presented changes.
For example, BRL Savings corresponds to the Income in Real strategy, and Euro Savings corresponds to the Income in Euro strategy.
How do I invest?
- Open Picnic on the web and go to Passive Income.
- Choose one of the available strategies.
- Review the asset, network, protocol, estimated yield, risks, and fees.
- Enter the amount and review the transaction details.
- Confirm the transaction with your wallet.
After investing, you can track your balance and yield in the Passive Income area.
What are the fees?
For most strategies, Picnic charges a fee of 0.1% of the amount invested. Some options may have specific terms or be fee-free.
The exact cost of each strategy is shown before you confirm the transaction.
How do withdrawals work?
You can request a withdrawal on the strategy page. Once the transaction is complete, your position is converted back into the corresponding asset.
Withdrawal timing and availability may depend on the blockchain network, protocol, and strategy liquidity.
What are the risks?
Passive Income uses protocols and smart contracts. Its main risks may include:
- smart contract failures or attacks;
- problems with the protocol or network;
- loss of peg of the digital asset;
- temporary lack of liquidity;
- price fluctuations in strategies that use volatile assets.
Passive Income investments are not protected by Brazil's Credit Guarantee Fund (FGC). If a strategy has specific protection, that information will appear on the product's own page. Protection that applies to one strategy does not automatically extend to others.
Frequently asked questions
Is the yield guaranteed?
No. Yield changes according to protocol, network, and market conditions.
Do I need to use the app to track my investment?
No. The complete catalog and all Passive Income options are available on the web version. In the app, only selected strategies appear as Savings products.