PiggyBank: LAB token basis trading error, token manipulated by the market, USDC treasury has retracted 15%

The revenue agreement PiggyBank issued an announcement stating that there was a serious error in the LAB token basis trading conducted last month. PiggyBank disclosed that the team previously purchased locked LAB tokens at a low price through OTC channels for about $100,000 (accounting for approximately 2% of the portfolio) and simultaneously shorted perpetual contracts for hedging. However, during the holding period, LAB encountered severe market manipulation, liquidity depletion, and deeply negative funding rates, leading to excessively high hedging costs. The team ultimately chose to close the short position to limit downside risk. Based on the current price, the total value of the locked LAB position is $1.35 million. However, due to the lack of liquidity in this position, PiggyBank will exclude it from the net asset value calculation before its first unlock on August 14.

Although the situation is still changing and there is still a possibility of considerable 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 the USDC treasury, about 12% in SPYx, and about 9% in JitoSOL. A detailed report will be released next week, including follow-up processing plans. On-chain investigator ZachXBT had previously publicly questioned PiggyBank, accusing it of insider control over more than 95% of the supply.