What is Papertrade?

Papertrade is a fair-launched, fully on-chain perpetuals exchange built in the Hyperliquid ecosystem, with trading logic on HyperEVM.

Core features

Papertrade supports one-click long and short trading without a Papertrade orderbook or matching engine.

The protocol is designed around Hyperliquid BBO-mid execution, no funding costs, no spread and no trade-size slippage, subject to market and open-interest controls.

BTC and ETH are the initial markets described by the project documentation, with leverage up to 1000×.

How Papertrade runs

Papertrade's Exchange contract lives on HyperEVM and reads HyperCore state through Hyperliquid precompiles.

Trades are synthetic swaps between the trader and the protocol LP. No Hyperliquid perpetual contract changes hands when a Papertrade position opens or closes.

The execution price is derived from Hyperliquid best bid and ask state rather than from a separate off-chain oracle.

The LP and PAPER

The LP starts without upfront seed capital and grows from protocol trading economics. If reserves are temporarily insufficient for a winning payout, unpaid profit can enter a FIFO payout queue.

PAPER is minted from eligible realised losses and liquidations. The documentation describes a fair launch with supply beginning at zero and no pre-mint, team allocation, VC allocation, airdrop or vesting schedule.

Staked PAPER participates in USDC revenue distributions from LP-side protocol revenue and eligible LP excess.

Trading costs

Papertrade does not use a conventional notional swap fee, spread or funding cost. Profitable closes are subject to asymmetric impact, while LP-side settlement carves fund staking and protocol economics.

Losses are not charged an additional user-side fee on top of the realised loss.