Wu Shuo learned that the yield agreement PiggyBank issued a statement saying that one month ago, they established a LAB-related position with $100k, using a strategy of buying LAB at a discount to lock in the position and hedging with perpetual futures short positions. PiggyBank stated that due to LAB's sharp fluctuations in a low-liquidity environment and a deeply negative funding rate, continuing to maintain the hedge is no longer economically rational, so they have closed the short position. Based on the current price, the locked LAB position is worth approximately $1.35 million, but due to insufficient liquidity, it will not be included in NAV before the first unlock on August 14. As a result, today’s USDC treasury NAV will decline by about 15%, SPYx by about 12%, and JitoSOL by about 9%. PiggyBank said they will release a detailed report next week.

On-chain investigator ZachXBT later criticized their use of user assets to participate in high-risk token trading, and in May, he questioned issues such as opaque private loans/OTC, vesting period adjustments, market-making coordination, and highly concentrated supply related to LAB.