PiggyBank Faces NAV Consequences After Failed LAB Hedge

PiggyBank, a well-known cryptocurrency investment firm, has announced that it will exclude its locked LAB token position from its net asset value (NAV) calculations until August 14. This decision comes after the team acknowledged a 'serious mistake' in last month's LAB basis trade.

According to reports, PiggyBank had attempted to hedge its LAB token position by shorting perpetual futures. However, the team revealed that the market manipulation and liquidity issues led to deeply negative funding rates, making the hedge too costly to maintain. As a result, the firm was forced to close the short position to limit downside risk.

The locked LAB position is currently valued at $1.35 million, but its exclusion from NAV will have significant implications for PiggyBank's portfolio. The team estimates that this move will lead to an approximate 15% drop in its USDC vault, about a 12% decline in SPYx, and around a 9% decrease in JitoSOL.