PiggyBank Discloses $579K Loss from LAB Basis Trading Manipulation on June 6

According to ChainCatcher, PiggyBank suffered a net drawdown of $579K on June 6 following a LAB basis trading position exposed to market manipulation. The protocol had purchased 142,800 locked LAB tokens (approximately $102.5K) via OTC in early May and opened perpetual short positions to hedge. Market participants maintained spot prices significantly above perpetual prices, pushing funding rates to an annualized -17,000%, forcing the protocol to close short positions at a loss of approximately $476K. The locked LAB tokens currently hold $1M in spot value but have been excluded from NAV due to poor liquidity and lack of hedging.

Affected users will receive USDC compensation for actual losses from NAV differences, future LAB token sales (expected to unlock between August 14 and October 14, currently valued at $1M), and 50% of future platform revenues. All users captured in the June 6 snapshot qualify for compensation.