📰 Just 7 days after Papertrade launched, its nominal revenue according to DefiLlama reached $57.16 million, with daily revenue exceeding Circle’s for two consecutive days. Those are impressive numbers, but “revenue” here doesn’t consist entirely of regular trading fees.
🔥 A closer look at the figures reveals that revenue includes a 2% fee when traders close positions, a 2% liquidation fee charged when positions are liquidated, and surplus funds distributed to stakers once the liquidity pool exceeds $5 million. In other words, losses from liquidations are also counted as part of this dividend machine.
💡 Over those 7 days, about $52.76 million—92.3% of nominal revenue—was distributed to PAPER stakers, while the protocol retained about $4.4 million. Users who lose money also receive PAPER in proportion to their losses. Mechanically, it’s a bit like “lose your principal, get some tokens, then wait for dividends.”
⚠️ But whether the dividends can continue depends on traders continuing to get liquidated and the liquidity pool staying above $5 million. If liquidations become less frequent, or profitable traders withdraw their funds in large numbers, surplus distributions could stop. The high dividends may look tempting, but it’s worth understanding where they come from.
🤔 Would you consider this kind of dividend sustainable income, or more like a cycle that depends on new funds and liquidations?
#Papertrade #PAPER #DeFi #Derivatives
🔥 A closer look at the figures reveals that revenue includes a 2% fee when traders close positions, a 2% liquidation fee charged when positions are liquidated, and surplus funds distributed to stakers once the liquidity pool exceeds $5 million. In other words, losses from liquidations are also counted as part of this dividend machine.
💡 Over those 7 days, about $52.76 million—92.3% of nominal revenue—was distributed to PAPER stakers, while the protocol retained about $4.4 million. Users who lose money also receive PAPER in proportion to their losses. Mechanically, it’s a bit like “lose your principal, get some tokens, then wait for dividends.”
⚠️ But whether the dividends can continue depends on traders continuing to get liquidated and the liquidity pool staying above $5 million. If liquidations become less frequent, or profitable traders withdraw their funds in large numbers, surplus distributions could stop. The high dividends may look tempting, but it’s worth understanding where they come from.
🤔 Would you consider this kind of dividend sustainable income, or more like a cycle that depends on new funds and liquidations?
#Papertrade #PAPER #DeFi #Derivatives