A clear thesis.
An open notebook.

01 / What is possible

The starting point is
the protocol itself.

Papertrade describes a synthetic trading venue on HyperEVM using Hyperliquid prices. Traders face its own liquidity pool; opening a Papertrade trade does not automatically open an offsetting Hyperliquid position. Its advertised leverage ceiling is not a proposed treasury setting.

PAPER starts with zero supply in the documented design. Eligible losing closes and liquidations create it. The launch profile restricts ordinary transfers, so a public DEX purchase and a direct distribution of PAPER to Solana wallets cannot be assumed.

On the check date, Papertrade’s official homepage still displayed “coming soon.” The documentation describes intended behavior; we have not verified a canonical live deployment or operational executor access. Community launch dates do not establish protocol readiness.

02 / Use of funds

Start with actual
fee receipts.

The proposed allocation is 100% for strategy and reserves, applied to net creator fees received from the project’s configured, eligible pools. It is not a transfer tax, a claim on every trade everywhere, or a claim on the full AMM trading fee.

Creator-fee availability depends on the launch and pool configuration. Collection, conversion, and transfer costs must be disclosed when deriving net receipts. Actual fee rates and claimable shares must be checked against the live pool configuration; pool trading fees and net treasury receipts are different amounts.

Inside the strategy allocation

The treasury must fund both venues before trading. It also needs liquid cash for funding charges, fees, execution errors, and withdrawals. We would set a minimum buffer and a maximum loss budget before activation; exact sub-allocations are deliberately not presented as approved policy.

The budget would track acquisition cash spent per PAPER and stop opening new positions if a limit is reached. Unused funds remain USDC. New token fees are contributed capital, not strategy profit.

A ledger people can reconcile

• Gross fee receipts, deductions, and net receipts.
• Strategy allocation and itemized execution costs.
• USDC on Solana, in transit, on each venue, and committed as margin.
• Trading P&L, external funding, and execution costs.
• PAPER minted and staked, unpaid queued credits, claimed USDC, and funded holder distributions.

03 / Hedge strategies

Reduce price exposure.
Measure what remains.

A delta-neutral position offsets sensitivity to small changes in the underlying price. Equal and opposite underlying quantities can cancel gross price P&L in a simple model. Papertrade’s nonlinear settlement, separate collateral, and execution timing mean the full strategy is not perfectly neutral.

Candidate A · An external hedge

Pair a Papertrade long with a matching short on a venue such as Hyperliquid, or reverse both directions. This is a design candidate for testing, not a strategy we have demonstrated as profitable.

• Papertrade loses: its eligible loss may mint PAPER while the external leg earns an offsetting gross gain. External fees, funding, slippage, and basis differences reduce the result.
• Papertrade wins: its winning P&L is reduced by its settlement rules while the external leg takes the full opposite price loss. This close earns no PAPER from the winning Papertrade leg.
• Timing matters: a partial fill, rejected order, delayed relayer, or close on one venue leaves temporary directional exposure.

Hyperliquid funding is exchanged hourly and can benefit or cost the hedge. Its liquidation mark can differ from Papertrade’s reference price. A gain on one venue does not immediately supply margin to the other.

Candidate B · Opposing Papertrade positions

Pairing both directions inside Papertrade changes the cost profile: the losing side pays the full loss while the winner receives a reduced profit, potentially queued. PAPER may be earned on the eligible losing close, but the combined cash result can be negative.

The ability to maintain and execute the required opposing positions, and their reward eligibility, must be explicitly verified. We did not find a primary-source approval of a paired-position farming strategy. The absence of a stated restriction is not confirmation that the implementation or executor will accept it.

Candidate C · Remain liquid

If expected acquisition cost, execution access, or available collateral does not meet published limits, keep uncommitted capital in USDC. Directional trading is a different strategy and would require its own budget and policy.

04 / Issuance & costs

More PAPER is not
the same as more profit.

While tracked LP capital is below $2 million, the documented flat issuance rate is 100 PAPER per dollar of eligible loss basis, including the underwater regime. For a solvent voluntary losing close, a 2% LP-side fee carve reduces that basis. It does not add another 2% to the trader’s already realized loss.

Liquidations use the full isolated margin lost as their mint basis. Queue-active cash losses and debt-funded losses have their own accounting; a debt-funded loss can use a destroyed queued claim. The website’s calculator intentionally does not model those regimes.

The tail curve rewards earlier issuance

Beyond the flat region, the marginal rate depends on H, the strict high-water mark of cumulative tail-region LP gain. H is not PAPER’s market capitalization or current LP cash. Staking withdrawals do not reset it.

Why the winning leg needs a haircut

Papertrade documents asymmetric impact on winning P&L and a 0.2 basis point winning-price deadband. Detailed settlement documentation also describes a 2% fee on winning profit. Some simplified trading text describes the haircut as the only cost. This inconsistency must be resolved against the live contract; our model does not assume the additional fee disappears.

“No funding” or “no notional trading fee” on Papertrade does not make accumulation free. An external hedge adds its own venue fees, funding, spread, slippage, and operational costs. Avoid charging these twice if they have already been deducted from the winning-credit input.

What the interactive example calculates

This is a separate, hypothetical pair of opposing Papertrade positions, whose availability and eligibility remain unverified. Let L be the eligible cash loss, W the other Papertrade leg’s credit after its winning-side adjustments, and C all other costs. We assume the losing leg closes first, while solvent and wholly within the flat-rate region. The optional queue assumes LP backing changes before the winner settles. If the loss itself closes while the queue is active, its mint-basis rules differ and this calculator does not apply.

At L = $100, W = $70, and C = $5, the example earns 9,800 PAPER and has a $35 net cash cost if the winning credit settles. If all $70 remains queued, net cash outflow so far is $105, with a separate $70 claim. This net outflow excludes committed margin: both legs require separate funding beyond the displayed net cost. The implied $0.003571 cash cost per PAPER is neither a resale valuation nor proof of profit. The 70% credit assumption is not an estimate of a current protocol quote.

05 / Cash & staking

A claim is not
spendable cash.

If the LP cannot fully back a winning profit, Papertrade can put that profit in a FIFO settlement queue. Its documentation separates returned cash principal from queued profit. The queue depends on future backing and has no guaranteed settlement deadline.

Papertrade positions are isolated. The documented lifecycle does not support adding margin, partial closes, or changing leverage in place. A liquidation forfeits the isolated margin; its threshold includes a buffer before zero equity. Rebalancing by closing and reopening has its own execution and settlement consequences.

What staked PAPER can earn

Staked PAPER participates in actual USDC distributions according to a time-weighted share of the staking pool. The design describes settlement-related revenue and excess LP capital swept above the $5 million cap as sources. There is no fixed distribution amount, schedule of guaranteed income, or fixed APY.

Other participants minting and staking PAPER can dilute the treasury’s share. Instant staking and unstaking in the documentation do not guarantee instant access to off-protocol USDC.

How USDC would return to Solana

1. Claim staking income into the Papertrade Exchange balance.
2. Withdraw through the documented path to the treasury’s HyperCore spot account.
3. Use a verified return route through the required Hyperliquid/HyperEVM and cross-chain interfaces.
4. Reconcile confirmed canonical USDC on Solana, subtract disclosed distribution costs, and fund a holder claim epoch.

Circle lists Solana and HyperEVM in its CCTP ecosystem, and Papertrade documents a CCTP-based deposit route. Those components do not by themselves implement our return path. Address derivation, supported assets, executor access, minimum amounts, bridge costs, finality, and failure recovery all need testing in both directions.

06 / Community research

Useful ideas.
Different evidence.

These are independent community proposals and research projects. Their published designs can inform our questions; they do not establish that PAPER farming is profitable, authorized, or ready to run.

PaperStrategy

Its stated model directs trading taxes into a PAPER treasury, stakes the resulting holdings, and uses staking income for token buybacks and burns. The site withholds trading-method and live-position details. That leaves its acquisition cost and execution performance unverified. Our proposed holder payout model differs by distributing settled USDC.

PaperDAO

Its proposal pools capital to target early issuance and retains PAPER, trading P&L, and staking income in a treasury. It describes a future pro-rata redemption route for PULP when PAPER becomes transferable, alongside trading-fee-funded buybacks and burns. The timing and redemption conditions are dependencies, not proof of a live hedge.

PaperTrade Simulations

HakaiRhinohl’s public repository replays historical Hyperliquid trades through a model of Papertrade’s emissions, liquidity, impact, and queue. It is useful as an example of scenario-based protocol analysis. Historical traders may behave differently under Papertrade’s incentives, and chosen parameters can drive the output. We do not treat its results as forecasts or a validated acquisition bot.

Paired-position community thesis

A community essay also discusses paired long/short positioning as a PAPER accumulation idea. It provides a hypothesis to test, not audited fills, measured cash acquisition costs, or verified strategy eligibility.

07 / Holder distributions

Share only what
has settled.

The draft design uses weekly epochs and time-weighted eligible Solana token balances. This reduces the advantage of buying immediately before a single snapshot. Eligibility exclusions, supported accounts, the exact balance measurement, and claim expiry rules remain to be finalized.

A 1,000,000-token average balance out of 800,000,000 total eligible tokens represents 0.125%. If an epoch is funded with 2,500 USDC, that holder’s illustrative share is 3.125 USDC before any separately disclosed individual claim cost or rounding rule.

The funded pool must be actual USDC available on Solana after settlement and disclosed distribution costs. It must not include new fee capital, an assumed PAPER resale value, unrealized gains, queued claims, or unwithdrawn venue balances.

We propose an independently reviewable claim calculation, a published epoch manifest, and funded claim balances. A dashboard would distinguish amounts earned, settled, available to claim, and already paid. No claim program currently exists.

08 / Future market route

A second path,
when the market exists.

The original direct-acquisition concept stays on the roadmap: use the strategy allocation to purchase PAPER through a verified market. It becomes testable only after ordinary transfers are supported, canonical contracts are confirmed, and executable liquidity exists.

Direct distribution of PAPER would additionally require a supported custody and cross-chain delivery design or a verified holder-to-HyperEVM wallet mapping. A Solana token balance alone does not give the treasury a destination for HyperEVM PAPER.

If both acquisition routes become available, compare their all-in realized cost, liquidity, execution risk, and settlement time. Today there is no verified PAPER market price in this website’s calculations.

09 / Token & treasury

The token is live.
The plan stays transparent.

Paper Reserve (PSRV) has launched on Solana. The official mint is 4WpD6UCoFTVFcZFPhjuaTUifStLevYabUzVuAYBdpump.

On-chain mint data checked at publication shows 1,000,000,000 PSRV in total supply and 6 decimals, with mint and freeze authorities revoked. Total token supply is distinct from eligible balances in the rewards model; final eligibility rules remain to be published.

Inspect the Solana mint ↗PSRV market chart ↗

A proposed 2-of-3 treasury multisig would separate operational access from treasury authority. It still carries signer and key-management risk. Treasury signers, operational permissions, token allocation, live fee configuration, and any automated execution access still need public documentation before treasury strategy activation.

Autonomous trading permissions should be narrowly bounded and revocable. A multisig label does not itself enforce the strategy’s loss limits; those controls need their own implementation and tests.

10 / Activation gates

Evidence before
the first allocation.

1. Verify the deployment. Confirm canonical contracts, upgrade controls, active markets, executor access, and the actual transfer restrictions.
2. Verify strategy eligibility. Resolve paired-position support and relayer behavior. Test the precise mint, winning-fee, and liquidation accounting.
3. Simulate full cash paths. Include adverse funding, failed hedges, gaps, liquidation, queue delays, and dilution. Evaluate realized cash cost and maximum collateral needed.
4. Test a complete round trip. Deposit, trade, close, stake, claim, withdraw, and return canonical USDC to Solana using the intended accounts.
5. Publish the controls. Show fee terms, treasury addresses, signers, token allocation, loss and leverage limits, settlement policy, and holder eligibility rules.
6. Run a capped pilot. Use an approved loss budget, reconcile every movement, and disclose observed results before considering larger deployment.

Papertrade also documents executor dependencies and governance powers, including market retirement and upgrade risk. A treasury must account for these controls even when the hedge itself is priced correctly.

Paper Reserve is independent of Papertrade and Hyperliquid. The website describes a proposal, not an active financial service or a promise of returns.

Source register

Go to the
original material.

Checked 6 October 2026. Documentation can change before launch. Protocol documents describe design; community pages describe their authors’ plans. Neither is substituted for live contract verification.

Papertrade · primary protocol material

1. Official homepageLaunch presentation and current public availability.
2. What is Papertrade?Synthetic venue and reference-price architecture.
3. PAPER overviewIssuance and transfer profile.
4. PAPER emissionsEligible basis by close type and solvency regime.
5. Mint curveFlat issuance and tail high-water mark.
6. PAPER staking · Staking dividendsParticipation, USDC sources, and claim accounting.
7. Trades and pricing · Asymmetric impactWinning-side adjustments and trade lifecycle.
8. Exchange detailsDetailed accounting and executor interfaces.
9. Solvency queue · LiquidationsDelayed profits and isolated collateral.
10. Deposits and withdrawalsFunding and withdrawal route.
11. RisksGovernance, pricing, solvency, and executor dependencies.
12. Contract addresses · PAPER contractsReferences to verify before deployment.

Infrastructure · primary documentation

1. Hyperliquid funding · Fees · LiquidationsExternal hedge cost and collateral mechanics.
2. Circle CCTP supported domainsCross-chain infrastructure; not an implemented project route.
3. Raydium LaunchLab creator feesPool-dependent fee collection.
4. Solana token authority · SquadsToken controls and multisig design references.

Community · proposals and research

1. PaperStrategyPublished treasury and buyback proposal.
2. PaperDAOPooled accumulation and conditional redemption proposal.
3. PaperTrade Simulations — HakaiRhinohlOpen simulation, not live strategy performance.
4. Dino’s Papertrade thesisCommunity analysis published 15 May 2026.