đ Down 93% in a day: What does PaperTradeâs âcliff-dropâ in staking revenue tell us?
PaperTrade has been back on the timeline these past couple of days, this time because the numbers look bad.
According to data shared by @ryandcrypto:
đš Staking revenue was about $2.1 million on Sunday
đš About $1.28 million on Monday
đš Just around $84,500 in the two hours before Tuesdayâs close, down about 93% for the day
Another user, @ftosol, added a few more figures: tradersâ cumulative P&L was about -$65 million, TVL had fallen about 40% from roughly $69 million, and open interest was down more than 80%.
For context: PaperTrade uses a âlose money to mintâ model, where trading losses can be exchanged for PAPER. Stakers earn a share of the USDC generated from tradersâ losses, and the contracts offer leverage of up to 1,000x. Citing risks such as oracle manipulation, the project team made PAPER non-transferable, and the volume-farming frenzy cooled off almost immediately.
My take:
A large part of that previous âdaily revenueâ in the millions was propped up by people deliberately losing money to get tokens. Once the tokens couldnât be transferred or sold, that crowd left. Itâs not that the platform suddenly got worse; the retreat of incentives has exposed the real demand.
When you see any âhigh-yieldâ project, first ask: Is this money coming from real users, or are they being lured in by token subsidies?
One more warning: lots of accounts on the timeline are copying and pasting the same âPAPER ICO free registrationâ promo. Donât click links blindlyâverify through official channels first.
Do you think the activity that remains after the hype fades can support PAPERâs value?
#PaperTrade #DeFi #ć°¸çťĺ續 #CryptoSafety
PaperTrade has been back on the timeline these past couple of days, this time because the numbers look bad.
According to data shared by @ryandcrypto:
đš Staking revenue was about $2.1 million on Sunday
đš About $1.28 million on Monday
đš Just around $84,500 in the two hours before Tuesdayâs close, down about 93% for the day
Another user, @ftosol, added a few more figures: tradersâ cumulative P&L was about -$65 million, TVL had fallen about 40% from roughly $69 million, and open interest was down more than 80%.
For context: PaperTrade uses a âlose money to mintâ model, where trading losses can be exchanged for PAPER. Stakers earn a share of the USDC generated from tradersâ losses, and the contracts offer leverage of up to 1,000x. Citing risks such as oracle manipulation, the project team made PAPER non-transferable, and the volume-farming frenzy cooled off almost immediately.
My take:
A large part of that previous âdaily revenueâ in the millions was propped up by people deliberately losing money to get tokens. Once the tokens couldnât be transferred or sold, that crowd left. Itâs not that the platform suddenly got worse; the retreat of incentives has exposed the real demand.
When you see any âhigh-yieldâ project, first ask: Is this money coming from real users, or are they being lured in by token subsidies?
One more warning: lots of accounts on the timeline are copying and pasting the same âPAPER ICO free registrationâ promo. Donât click links blindlyâverify through official channels first.
Do you think the activity that remains after the hype fades can support PAPERâs value?
#PaperTrade #DeFi #ć°¸çťĺ續 #CryptoSafety