Papertrade
SoonTrading opens Oct 10Synthetic perps on HyperEVM at up to 1000x, priced at Hyperliquid's mid. Launching October 10.
My take on Papertrade.
Why I farm it, what is announced, how to start, and what is still unknown.
Why I farm it
- On my watchlist, not farmed yet. The design is unlike anything else I track: losing trades are what mint the token, not volume.
- I will post my link here and on X once it is live. Until then, read the docs before you deposit anything.
My take, not advice.
What we know
- Papertrade is a fully on-chain perp exchange on HyperEVM. Every trade is a synthetic swap against its LP at Hyperliquid's BBO mid, read through a precompile: no order book, no spread, no slippage, no funding. Nothing is traded on Hyperliquid itself.
- Up to 1000x leverage. There is no notional fee: the protocol takes a haircut on the gain of profitable closes, and losses pay nothing on top of the loss.
- The LP starts at zero and grows only from user losses. If it cannot pay, winners are paid from a queue as later losses come in.
- PAPER, the LP fee-claim token, is minted only from realised losses: 100 PAPER per $1 of loss while the LP is below $2M, decaying past that. No pre-mint, no team or VC allocation, no airdrop. Not transferable at launch, only stakeable.
- Staked PAPER earns 1% of the realised PnL of every settled trade while no payouts are queued, plus every dollar of LP gain above $5M.
- Source: Papertrade docs.
- Launch plan: deposits open October 8, 2026 with trading paused; live trading through the papertrade.xyz frontend only from October 10; the contract opens to everyone later, then builder codes (a 1% frontend fee), then PAPER transfers.
- Source: Papertrade on X.
How to farm it
- 1Read the docs, especially the LP, the payout queue and liquidations.
- 2Deposit on papertrade.xyz during the deposit-only phase if you want to trade at launch: the team expects heavy chain congestion and says deposits made during live trading will be slow.
- 3Trade from October 10, through the frontend only at first.
What we don't know
- At 1000x a tiny move liquidates a position. Under this design, losing money is the mechanism, not a side effect.
- Winners are paid by the LP, which starts empty. While it is low or insolvent, a winning close can wait in the queue until other users lose.
- PAPER cannot be sold at launch and no date is set for transfers. Its value is unknown.
- Launch congestion: confirmation delays are expected, worse for small trades. Priority goes by trade type and size.
- New contracts, no public audit seen yet. Check the contract addresses yourself.