Papertrade, a synthetic perpetuals platform operating on the HyperEVM network, has confirmed that its native PAPER tokens will remain non-transferable. The project leadership decided to maintain this restriction to mitigate risks related to potential perpetual attacks.
The decision follows a security incident involving oracle manipulation, which reportedly led to the draining of approximately $1.28 million from the platform's liquidity pool. This event underscored the vulnerabilities associated with relying on a single-oracle system.
Currently, the PAPER token functions exclusively as an instrument for staking and protocol revenue distribution. The platform has not established an open secondary market for the asset, and the transferability remains suspended until further notice.
Market participants are now focused on future updates regarding the security of the oracle infrastructure and potential changes to the token's status. Developments concerning staking rewards and emission schedules are expected to influence the asset's long-term valuation.
