Papertrade.xyz, a perpetuals exchange built on Hyperliquid, offers up to 1,000x leverage and has drawn $118 million in total value locked. Open interest stands at around $11 billion, while $54 million backs those positions.
Papertrade.xyz, a new trading platform on Hyperliquid, holds $118 million in total value locked as of 11 a.m. Eastern time on Saturday, Oct. 10, 2026. It lets traders magnify positions by up to 1,000 times their initial investment.
The exchange describes itself as a fair launch, fully onchain synthetic perpetuals exchange built on Hyperliquid's HyperEVM layer. Papertrade offers traders leverage to open positions larger than their capital would normally allow.
How 1,000x compares with Hyperliquid
Hyperliquid's leverage limits for assets such as BTC generally range from 20x to 40x. A trader using 40x can withstand a 2.5% price move, and a 20x position can withstand 5%. At 1,000x, a 0.1% move in the wrong direction can wipe out a position.
Papertrade has no funding rates, no spread and no conventional notional trading fees, and it does not match positions on an order book. Instead, every trade is a synthetic swap between the user and a shared protocol liquidity pool.
$11 billion in open interest, $54 million in backing
Deposits rose from more than $14 million in USDC at launch to $118 million. However, open interest is around $11 billion across 2,349 positions at 11:45 a.m. Eastern time on Saturday, while only $54 million backs those positions.
Under Papertrade's rules, winning traders might not receive their full profits immediately if the pool lacks sufficient funds. Their original margin would be returned, but unpaid profits would enter a waiting line. Traders who lose money receive PAPER tokens.
PAPER tokens and the casino label
Bankless author David Christopher used the word casino to describe the platform.
PAPER has a total supply of roughly 2.77 billion tokens, and about 2.64 billion are staked to earn USDC rewards. Transfers are disabled at launch, so the token can only be minted from trading losses.
The founders, two traders known as Jez and Blurr, also sold 100 pairs of paper trousers for $2,000 each. The pairs sold out in approximately 40 minutes.
Source: Bitcoin News
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