Wu Shuo learned that the yield protocol PiggyBank posted that, one month ago, it established a position related to LAB with $100,000, employing a strategy of buying locked LAB at a discount and hedging with perpetual futures shorts. PiggyBank stated that due to extreme volatility in LAB under low liquidity conditions and deeply negative funding rates, maintaining the hedge no longer makes economic sense, and thus has closed the short position. At current prices, the locked LAB position is valued at approximately $1.35 million, but due to insufficient liquidity, it will not be included in NAV until its first unlock on August 14. As a result, today’s USDC vault NAV will decline by approximately 15%, SPYx by about 12%, and JitoSOL by around 9%. PiggyBank plans to release a detailed report next week. On-chain detective ZachXBT subsequently criticized the use of user funds for high-risk token trading, having previously raised concerns in May about LAB’s opaque private loans/OTC arrangements, adjusted vesting schedules, coordinated market-making, and highly concentrated supply. https://t.co/MSTMBuiaSb