Papertrade Launches with $10.3 Million in Staker Rewards Amid $18.6 Million in Trader Losses

Papertrade, a synthetic perpetuals exchange built on HyperEVM, officially launched for trading on October 10, 2026. In its initial hours, the platform showcased approximately $10.3 million in rewards owed to stakers of its native token, PAPER, following around $18.6 million in net realized losses from traders.

The exchange operates on a unique model where stakers earn rewards from trader losses. For every $1 lost by traders, the protocol mints 100 new PAPER tokens, which are then distributed to stakers. This mechanism means that the more traders lose, the more tokens are created, and subsequently, the more rewards stakers receive.

On launch day, Papertrade recorded a staggering notional trading volume of $300 billion, with liquidations reaching nearly $13.89 billion. Staking participation was notably high, with approximately 94% of the total PAPER supply staked shortly after launch.

Papertrade allows for leverage up to 1,000x on Bitcoin and Ethereum trades, which significantly increases the risk for traders. The platform's design, which includes a single shared liquidity pool, means that individual trades are capped at $10 million to manage the impact on the pool.

Co-founded by anonymous traders known as Jez and Blurr, Papertrade emphasizes a fair-launch approach, with no pre-mining or airdrops, ensuring that only traders who incur losses can acquire PAPER tokens. As the platform continues to evolve, the dynamics between traders and stakers will be closely watched.