Ansem: The brand-new mechanism of Papertrade may be epoch-making and is expected to reshape the high-leverage speculative market.

BlockBeats news, October 19 - Crypto trader Ansem posted that Papertrade could become an innovative project with long-term development potential. High-leverage perpetual contracts have always been one of the most profitable products in the crypto industry, and market demand for speculative trading will continue to exist. Papertrade supports users in opening and closing synthetic 1000x leveraged positions without causing actual impact on the market. Its business model uses traders' losses to support on-chain liquidity pools (LP), with losses exceeding a certain LP size cap distributed to PAPER stakers. In its first week online, the platform distributed over $50 million to PAPER stakers.

Traditional perpetual contract DEXs mainly generate revenue through trading fees, while Papertrade attempts to directly convert traders' losses into a source of revenue. Since high-leverage trading is difficult to win, theoretically traders' losses are expected to cover winners' profits over the long term. When the LP reaches a certain size cap, even if the ratio of platform winners to losers gradually approaches 50:50, this model still has its unique advantages, because traders can share platform revenue by staking platform tokens rather than merely paying fees to the platform.

Additionally, Papertrade's model may in the future expand beyond perpetual contracts to speculative games, including online entertainment and other fields. If Hyperliquid is compared to infrastructure in the financial sector, Papertrade has the potential to become infrastructure for the internet's high-leverage speculation and gaming market. However, whether this model can continue to attract users, maintain liquidity, and achieve long-term development still remains to be verified by subsequent market performance.