After our successful launch on Oct 30th 2025, learn about the vision and next-steps ahead for PiggyBank.
We launched PiggyBank on October 30th 2025 with a single objective: bring sustainable yield on top of tokenized assets, without compromising on safety. As of today, three vaults are live: USDC, SPYx, and JitoSOL. Here’s what we’ve achieved in just 3 months:
More details are available at app.piggybank.fi/analytics.
DeFi has offered attractive yields for years. Products like Ethena, and many others following in its footsteps, have successfully captured bullish crypto market sentiment and transformed it into market-neutral returns on stablecoins. What’s been missing, however, is consistency and robustness across market cycles, especially during prolonged downtrends.
From day one, PiggyBank’s vision has been clear: bring on-chain yields that look more like hedge fund returns than typical DeFi farming - sustainable, risk-managed, and decorrelated from crypto market sentiment. This vision has a second dimension: enabling yield on asset classes beyond vanilla stablecoins.
“So how do you generate crypto-decorrelated yield, and what are the risks?"
At the core of PiggyBank lies a delta-neutral strategy. USDC deposits are deployed directly into automated, delta-neutral strategies, primarily based on funding-rate arbitrage across ~10 perpetual DEXs.
This strategy involves long/short positions on crypto majors, tokenized stocks, and commodities, while maintaining a healthy 5x portfolio leverage.
For non-stable assets, deposits are used as collateral on trusted Solana lending protocols such as Kamino or Loopscale. PiggyBank borrows stablecoins against these assets, which are then deployed into the same delta-neutral funding-rate strategies.
Across all vaults, strategies are tokenized, meaning users gain exposure through yield-bearing tokens rather than interacting directly with underlying positions. No directional market exposure is taken at any point: yields are generated exclusively through funding-rate inefficiencies, allowing returns to remain largely decorrelated from broader market movements.
Risk management is embedded at every layer of the system. Positions are continuously monitored and rebalanced to maintain healthy margin levels. Leverage is dynamically adjusted based on market conditions, including volatility, liquidity, and other proprietary metrics. As a final safeguard, partial take-profit and stop-loss orders are automatically placed around liquidation prices to limit tail-risk scenarios.
Despite launching late in Q4 2025, the final months of the year were particularly intense. Since October 30th, we shipped multiple core improvements, including major UI upgrades such as analytics and user dashboards. We launched the Oink System, introducing referrals and a reward program, completed a smart contract audit, opened the JitoSOL vault in partnership with Jet Europa, and integrated PiggyBank into the Solflare Explore section.
Our current priority is clear: improve our product.
Most of our resources are being deployed into strategy automation, allowing us to scale vault capacity without negatively impacting yield.
The secondary market is our immediate next milestone. Its purpose is threefold: enable access for users when vaults are full, provide instant liquidity for pbUSDC, and unlock deeper DeFi integrations. This foundation is critical for future lending use cases and Principal Token (PT) integrations.
Once the secondary market is live, lending becomes a natural extension of PiggyBank’s architecture. By allowing pbTOKENS to be used as collateral, we increase capital efficiency across the protocol: users can borrow against productive assets while continuing to earn yield, rather than exiting vaults. For PiggyBank, this improves capital efficiency by keeping liquidity within the ecosystem, enhancing vault utilization, smoothing inflows and outflows, and supporting more stable yields over time. This lending layer also acts as a bridge between our variable-yield strategies and fixed-yield products (see below), reinforcing our long-term vision of building a full on-chain yield stack for RWAs and tokenized assets.
Fixed-yield products will be introduced by leveraging PT/YT primitives, allowing users to separate principal from yield. By purchasing Principal Tokens (PT), users can lock in a predictable, fixed return and redeem their principal at maturity, independently of short-term yield fluctuations. Yield Tokens (YT), on the other hand, concentrate all variable yield and incentives, enabling advanced strategies such as yield leverage, point amplification, or speculative exposure to future APY. This integration allows PiggyBank to offer bond-like products on top of its strategies, while preserving the underlying market-neutral nature of the protocol.
Vault caps
Maintaining yield quality remains the priority. Vault capacity will continue to increase every epoch (currently ~$50K per epoch), with higher increments as automation improves.
Securing a seed round will allow us to strengthen the product and expand the core team. Our hedge-fund-like approach requires continuous optimization of asset allocation and de-risking, and improving the speed and efficiency of our algorithms is critical to support higher TVLs. Capital will also cover legal and compliance costs, including the acquisition of an IBKR trading license to expand our strategies, as well as further UI optimization and gamification to deliver the smoothest possible UX.
The contributor program will be strictly qualitative and contribution-driven. Rather than incentivizing activity for its own sake, we aim to reward meaningful contributions that directly strengthen the protocol and its ecosystem. This includes building tools that improve the product experience (such as @piggy_bank_fi_bot, the Telegram bot for epoch, deposit, and withdrawal tracking), producing high-quality educational, technical, or promotional content, facilitating relevant partnership introductions, and identifying bugs or vulnerabilities.
We are building a Proof-of-Solvency pipeline that provides verifiable backing for each vault without exposing strategy details. ZK proofs are used to validate exposure while protecting alpha. This data will feed into an in-app Strategy Dashboard, allowing users to monitor risk in real time. In the same spirit, additional smart contract audits are planned to further enhance security and trust.
You can expect PnL charts, clearer epoch statuses, withdrawal cancellations, and a series of incremental UI upgrades aimed at making the experience smoother, more engaging, more gamified and more transparent. We’ll also level up on the design front once the seed round is secured.
Our conviction is that tokenized stocks are still massively underexploited. Yield on top of tokenized equities is new for retail users, and we believe it will play a key role in bridging traditional assets to DeFi. New xStocks vaults are coming, alongside partnerships with tokens that can benefit from additional yield layers. We’re already in discussions with several major Solana protocols.
Longer term, PiggyBank aims to democratize yield on RWAs by integrating EARN buttons directly into CEXs. Our first step in this direction was the integration with Solflare Wallet.
Another core objective is to make PiggyBank less sensitive to market cycles, by integrating assets such as commodities that behave differently during prolonged bear markets. Capital preservation, consistency, and risk discipline will remain central as we scale.
