PANews reported on June 7th that PiggyBank, a yield protocol, issued a statement acknowledging a serious error in its LAB token basis trading last month. PiggyBank disclosed that its team had previously purchased and locked up approximately $100,000 worth of LAB tokens (about 2% of the portfolio) at a low price through OTC channels, while simultaneously shorting perpetual contracts for hedging. However, during the holding period, LAB experienced severe market manipulation, liquidity dried up, and funding rates were deeply negative, resulting in excessively high hedging costs. The team ultimately chose to close the short position to limit downside risk. At current prices, the total value of the locked LAB position is $1.35 million. However, due to insufficient liquidity, PiggyBank will exclude it from net asset value calculations before its initial unlock on August 14th. While the situation is still evolving and could potentially yield substantial returns, this is the "fairest and most transparent" way for users to manage liquidity. Therefore, today's net asset value will show a decline of approximately 15% in USDC Vault, approximately 12% in SPYx, and approximately 9% in JitoSOL. A detailed report, including follow-up measures, will be released next week.

On-chain investigator ZachXBT previously publicly questioned PiggyBank, accusing it of insider control of more than 95% of the supply.