papertrade

🚀 #PaperTrade opens trading on October 10, offering up to 1,000x leverage on HyperEVM. DefiLlama tracked roughly $102M in deposits ahead of launch.

⚠️ Key details traders should know:

🔹 Payout queue: If the pool cannot cover a winning trade’s profit, the unpaid amount becomes a claim in a queue. Traders get their original collateral back, but profits may be delayed.

🔹 Synthetic positions: Papertrade uses $HYPE midpoint prices, but its own pool acts as the counterparty. Trades aren’t matched directly on #Hyperliquid .

🔹 #paper token: Realized trading losses drive token issuance. Staking rewards depend on eligibility, available pool capital, and payout-queue status.

With extreme leverage and potentially delayed profit payments, pool liquidity and settlement rules are crucial risks to watch.

Organized into a concise Twitter version:

Papertrade.xyz has reached $118 million in deposits. It offers up to 1,000x leverage and is a synthetic perpetual DEX built on Hyperliquid’s HyperEVM.
There are currently 2,349 open positions, with about $11 billion in open interest and $54 million in backing capital.
Zero slippage, funding fees, spreads, and notional trading fees; losing traders receive PAPER, while profitable traders may face delays withdrawing profits if funds are insufficient.

#Papertrade #Hyperliquid #DEX

Additional detail (could be a second post):
Founded by Jez and Blurr; all 100 pairs of “paper pants” sold out at $2,000 each, bringing in $200,000 in sales. ⚠️ 1,000x leverage carries extremely high risk.

Less than 10 minutes after Papertrade launched, notional trading volume had already reached $14.4 billion.

BTC/ETH contract open interest stands at $3 billion and $2.66 billion, respectively.

Mechanism: For every $1 a user loses, the protocol mints PAPER according to a curve. When the LP balance is below $2 million, 100 PAPER are minted per $1 lost; above $2 million, the minting rate decreases as the balance increases.

#Papertrade #PAPER

Came across Papertrade: synthetic perpetuals on HyperEVM just opened—and the team initially disabled deposits and opened trading. Pre-deposits reportedly reached around $120 million, across more than 10,000 accounts.

The setup is pretty wild: up to around 1,000x leverage, trading against a shared liquidity pool, and no traditional order book. The losing side mints $PAPER. The maximum atomic position per trade is around $10 million, with roughly $1 billion of room for new open interest in each market direction.

A high-leverage testing ground. Right now, whether it’s crowded at launch is more worth watching than the narrative.

#Papertrade #Hyperliquid $HYPE