DeFi Protocol PiggyBank Faces $1.35M Loss on LAB Investment, Plans to Unwind Position on June 7

According to BlockBeats, on June 7, DeFi yield protocol PiggyBank announced it invested $100,000 in LAB approximately one month ago through an over-the-counter transaction, representing 2% of its portfolio at the time. The protocol implemented a Delta-neutral strategy by establishing a short position but suffered continuous losses due to extreme price manipulation and liquidity issues, which kept funding rates persistently negative.

PiggyBank stated it is preparing to close the short position to limit further losses. The protocol's current LAB holdings are valued at approximately $1.35 million; however, due to insufficient liquidity, PiggyBank plans to exclude this position value from net asset value, which may result in net value losses across its vaults in the near term.