DeFi yield protocol PiggyBank incurred significant losses due to investments in LAB

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BlockBeats News, June 7th, DeFi yield protocol PiggyBank announced that approximately one month ago, it invested $100k in LAB through over-the-counter trading at a low price, accounting for 2% of its investment portfolio at the time. After investing in LAB, the protocol adopted a delta-neutral strategy to establish short positions, but due to extreme price manipulation and liquidity issues, the funding rate remained negative, causing the short positions to continuously incur losses.

PiggyBank stated that the protocol is prepared to close the short positions to limit losses. Currently, PiggyBank's locked LAB position is worth about $1.35 million, but due to insufficient liquidity, the protocol plans to exclude this portion of the value from the net asset value, and users may see net asset losses across various vaults in the short term.

LAB-10.77%
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