Quick explanation of the @piggybank_fi situation: A month ago, PiggyBank put $100k into a discounted locked $LAB position and hedged it with shorts. The trade thesis was simple: capture the discount between the locked tokens and market price. Then $LAB went crazy. Thin liquidity, wild price swings, and expensive funding made the hedge too costly to maintain, so the team closed the short. They still hold the locked $LAB, which is worth $1.35M on paper today, but since it can't be sold until unlocks start on August 14, they're excluding it from NAV for now. That's why vaults are showing drawdowns today. Not a hack. Not bad debt. A basis trade that got messy, with the final outcome still depending on what happens after unlock.
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