Papertrade, a perpetual futures exchange built on HyperEVM, launched live trading on October 10, 2026. The platform offers up to 1,000x leverage on synthetic Bitcoin and ETH contracts without traditional liquidity providers. Prices are determined by the midpoint of Hyperliquid's best bid and best offer.
Before the launch, the platform attracted over $137 million in pre-deposits from more than 11,000 addresses. On the first day of trading, notional volume reached $14.4 billion, while open interest in BTC contracts hit $3 billion. Net realized trader losses on the launch day were estimated between $18 million and $30 million.
One trader with a history on Hyperliquid executed 305 trades in the first eight hours, securing peak gains of $1.73 million. However, the trader subsequently lost $450,000 when 30 short positions were liquidated on Saturday night. The platform compensates traders for losses by minting its native token, PAPER.
The protocol's revenue is generated entirely from trader losses and liquidations, which then funds rewards for PAPER stakers. The liquidity pool for payouts currently holds less than $2 million. Analysts have raised concerns regarding the pricing mechanism and potential liquidity constraints during periods of high volatility.
