PiggyBank's LAB Basis Trade Results in 15% USDC Vault Drawdown Amid Market Manipulation

According to ChainCatcher, yield protocol PiggyBank disclosed today that its LAB token basis trade has resulted in significant losses. The team had purchased approximately 100,000 USD of LAB tokens via OTC and shorted perpetual futures for hedging. However, severe market manipulation and liquidity drain triggered deep negative funding rates, forcing the protocol to close short positions. The locked LAB position is valued at 1.35 million USD as of current prices but will be excluded from net value calculations until its first unlock on August 14 due to insufficient liquidity.

Today's net value reflects a 15% decline in the USDC vault, 12% decline in SPYx, and 9% decline in JitoSOL. A detailed report with further plans will be released next week. Blockchain investigator ZachXBT previously raised concerns about PiggyBank's control of over 95% of LAB's token supply.