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PiggyBank Unwinds LAB Hedge as USDC Vault NAV Drops 15% Amid Extreme Volatility

GateNews
Price VolatilityCapital FlowProject Progress
LAB-0.68%
SOL3.49%
SPYX0.93%
PiggyBank has unwound a hedge on the LAB token after extreme volatility and thin liquidity made the basis trade untenable for vault users. The Solana-based yield protocol reported that its USDC vault NAV drawdown reached approximately 15%, with SPYx and JitoSOL vaults down 12% and 9% respectively. The LAB position was originally purchased through an over-the-counter deal for roughly $100,000, representing about 2% of the protocol's portfolio. The short perpetual futures hedge became expensive to maintain as funding rates turned deeply negative and liquidity deteriorated. PiggyBank said its locked LAB holdings are now valued at approximately $1.35 million and will be excluded from NAV calculations until the first unlock scheduled for August 14. A detailed report and follow-up handling plan are expected next week.
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