PiggyBank Exits LAB Hedge, Projects Up to 15% NAV Impact

PiggyBank has closed its LAB hedge position after severe market volatility and persistently negative funding rates made the strategy unsustainable.

With the position now closed, the protocol also detailed projected impacts on its products, including an estimated 15% drawdown in the USDC vault, 12% in SPYx, and 9% in JitoSOL. It further clarified that locked LAB tokens will not be included in net asset value calculations until they are unlocked in August.

Following these updates, ZachXBT raised concerns about the strategy, highlighting the exposure of user funds to a highly speculative asset.

Source: PiggyBank