PiggyBank Excludes Illiquid LAB Position From NAV Ahead of Aug. 14 Unlock After Hedging Losses

PiggyBank said it will exclude its locked LAB token position from net asset value (NAV) calculations until the first unlock on August 14, citing insufficient liquidity after a failed basis-trading hedge. According to ChainCatcher, PiggyBank acknowledged a “serious mistake” in last month’s LAB basis trade. The team said it bought locked LAB tokens via OTC for about $100,000, representing roughly 2% of the portfolio, and simultaneously shorted perpetual futures as a hedge. PiggyBank said LAB later faced severe market manipulation, liquidity dried up, and deeply negative funding rates made the hedge too costly. The team said it ultimately closed the short position to limit downside risk. At current prices, PiggyBank said the locked LAB position is valued at $1.35 million, but it will be excluded from NAV due to liquidity constraints until the August 14 unlock. PiggyBank said the NAV impact shown will include an approximate 15% drop in its USDC vault, about a 12% decline in SPYx, and about a 9% decline in JitoSOL. It said a detailed report and follow-up handling plan will be released next week. On-chain investigator ZachXBT previously questioned PiggyBank, alleging it had insider control of more than 95% of the token supply.