Negative fee rates are too harsh, with an annualized -17,000%, who can handle that... The project team still shows responsibility, exiting arbitrage + using LAB and income for compensation, at least they didn't run away.

PiggyBank LAB basis trading was forced to close due to long-term negative funding rates, resulting in a loss of approximately $476.4k, with a net value drawdown of about $578.9k on June 6. The spot market has been consistently higher than perpetuals, and the funding rate once reached an annualized -17,000%, making short hedging costs unbearable. The locked-in LAB market value is about $1 million, which has not been unlocked or included in the net value, and plans to sell gradually from August to October. The project team stated they will exit basis trading and arbitrage, and will compensate affected users with future LAB sales proceeds and platform revenue.