Wu Blockchain reports that the yield protocol PiggyBank announced it had established a $100,000 LAB-related position a month ago. The strategy involved buying discounted locked LAB tokens and hedging with perpetual contract shorts. PiggyBank stated that due to LAB's extreme volatility in a low-liquidity environment and deeply negative funding rates, maintaining the hedge was no longer economically viable, so the short positions have been closed. Based on current prices, the locked LAB position is valued at approximately $1.35 million. However, due to insufficient liquidity, this value will not be included in the NAV until the first unlock on August 14. As a result, today's USDC vault NAV will see a drawdown of about 15%, SPYx will drop by about 12%, and JitoSOL will decrease by about 9%. PiggyBank mentioned that a detailed report will be released next week. On-chain detective ZachXBT later criticized PiggyBank for using user assets to engage in high-risk token trading. He also raised concerns back in May about LAB's lack of transparency regarding private loans/OTC deals, vesting schedule adjustments, market-making coordination, and highly concentrated supply. https://(wublock123.com)/news/piggybank-hedge-lab-failure-usdc-vault-withdraws-15-percent-62358