most perp exchanges are built around a simple relationship: traders provide the flow, and someone extracts from it PaperTrade is experimenting with a very different incentive architecture built on HyperEVM by @izebel_eth and @blurr: - 1000x leverage - Zero slippage - Zero funding - Zero trading fees - No order book prices stream directly from Hyperliquid’s L1 through read precompiles, removing the need for a traditional oracle but the part i think deserves real attention is what happens when you lose PAPER is the native token - no premine, team allocation, VC allocation or airdrop when you lose a trade, your margin is converted into PAPER those tokens earn USDC dividends from LP revenue so the losing trader becomes economically aligned with the system they just lost to that creates a fascinating flywheel: retail losses → LP grows → PAPER gets minted → losers become stakeholders → stakeholders have an incentive to keep trading and bring others → more activity → more LP revenue the LP itself is also designed to bootstrap from zero liquidity through platform activity rather than relying on external market makers and when the LP approaches insolvency, emissions increase automatically to incentivize participation and recapitalize it is it guaranteed to work? absolutely not. a sufficiently skilled trader with a persistent edge can potentially drain the LP faster than retail activity replenishes it. that is the core risk but i actually like designs that expose a clear economic thesis and let the market test it jez read Reminiscences of a Stock Operator and built a perp mechanism around some of its deepest ideas that tells you something about the intellectual ambition here im bullish on PaperTrade my job as President Simplifyr0 is simple: understand whats complicated, strip away the noise, and make the mechanism legible PaperTrade is coming