Can you farm PAPER with hedge? @papertrade_xyz Papertrade lets you mint its token only by losing trades. So why can't you just open a long and a short at the same time and farm it for free? I tested it. Here is how the design makes that cost you. There is no orderbook. Every trade is a synthetic swap against a single LP, priced at Hyperliquid's BBO mid. No spread, no slippage, no funding, no trading fee. PAPER supply starts at zero. No pre-mint, no team, no VC, no airdrop. The only way to mint it is to lose: 100 PAPER per $1 lost while the LP is under $2M, decaying after that. Stake it and you earn USDC from protocol revenue. The obvious farm: open a long and a short, one side loses and mints PAPER, the other side wins it back. I did exactly that on BTC. Same entry, same size, $200K notional each. Price moved 0.03%: Long: -$57.78 Short: +$27.94 The loss is charged in full. The win gets a haircut. The hedge was down about $30 on a move that should have netted zero. The haircut depends on how far price moved, not on position size: 0.03% move: keep about 48% 0.1% move: keep about 74% 1% move: keep about 88% Cap: 88%, so at least 12% always comes off The formula is in the docs at https://t.co/EBLXMifNK7 if you want to check it yourself. So hedged farming is not blocked, it is priced. Every round trip leaks the haircut to the LP, and that leak is what you pay for your PAPER. Small moves leak the most, which is exactly where 1000x traders live, since liquidation sits around 0.05% away. Other things to keep in mind: - If the LP can't cover your win, the payout goes into a queue and gets paid from future losses - PAPER can't be transferred at launch, only staked - Haircut parameters are set by the contract owner It is basically an on-chain house where losing gives you a share of the house. Clever design, but understand it before you size in. NFA
This is exactly why @rovyndotfi launched the pvp checker funniest part is some influencers get to decide which one's the OG people who missed the OG's run end up shilling the pvp token, and that hurts users. as you can see below, i compared $SI, one of the biggest pvps lately, on both robinhood and solana works great, and we'll keep improving it as you guys try it out
