{"id":79335,"date":"2026-10-10T18:12:09","date_gmt":"2026-10-10T18:12:09","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/papertrade-perp-dex-pulls-in-118m-in-24-hours-with-1000x-leverage-bitcoin-news\/"},"modified":"2026-10-10T18:12:09","modified_gmt":"2026-10-10T18:12:09","slug":"papertrade-perp-dex-pulls-in-118m-in-24-hours-with-1000x-leverage-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/papertrade-perp-dex-pulls-in-118m-in-24-hours-with-1000x-leverage-bitcoin-news\/","title":{"rendered":"Papertrade Perp DEX Pulls in $118M in 24 Hours With 1,000x Leverage \u2013 Bitcoin News"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Papertrade.xyz is turning heads across crypto, pulling in $118 million in deposits with its eye-popping 1,000x leverage, where even a tiny price move can wipe out a trader\u2019s position.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The numbers are pretty wild. Papertrade has roughly $11 billion in open interest across 2,349 positions, yet just $54 million backs those trades, raising questions about what happens when traders cash out.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">There\u2019s a casino-like twist to the whole thing. Losing traders receive PAPER tokens, winners may have to wait for profits, and even $2,000 trousers have become part of the project\u2019s growing spectacle.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Papertrade\u2019s 1,000x Leverage Pushes Trading Risk to the Extreme<\/h2>\n<p>At press time on Saturday, Oct. 10, 2026, statistics collected <a href=\"https:\/\/paperdash.xyz\/pre-deposits\" target=\"_blank\" rel=\"noopener noreferrer\">from paperdash.xyz<\/a> and defillama.com indicate that there\u2019s $118 million in total value locked (TVL) at 11 a.m. Eastern time. Essentially, Papertrade.xyz describes itself as a fair launch, fully onchain synthetic perpetuals exchange which is built on Hyperliquid\u2019s HyperEVM layer.<\/p>\n<p><a href=\"https:\/\/markets.bitcoin.com\/glossary\/perpetuals\" target=\"_blank\" rel=\"noopener noreferrer\">A perpetuals exchange<\/a> lets people bet on whether the price of an asset like BTC or ETH will rise or fall without actually owning it. Unlike regular futures contracts, these specific types of trades have no expiration date. Papertrade offers leveraged trading, allowing participants to open positions substantially larger than their actual capital would ordinarily permit.<\/p>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/hyperliquid-behind-the-scenes-how-to-build-a-perpetual-dex\/\">The perp decentralized exchange (DEX) Hyperliquid<\/a> provides similar capabilities, but its leverage limits for assets such as BTC generally range from 20x to 40x, a considerably more conservative ceiling than Papertrade\u2019s 1,000x offering. For instance, a trader levering 40x leverage can withstand a 2.5% price move and 5% for a 20x leveraged position. That\u2019s a lot safer than 1,000x leverage, which can wipe out a trader\u2019s position if prices move 0.1% in the wrong direction.<\/p>\n<h2>No Funding Fees, No Order Book and a Casino-Like Trading Model<\/h2>\n<p><a href=\"https:\/\/docs.papertrade.xyz\/\" target=\"_blank\" rel=\"noopener noreferrer\">Papertrade has zero slippage<\/a>, no funding rates, no spread and no conventional notional trading fees. Moreover, positions are not matched on an order book or against other traders. Instead, every trade is a synthetic swap between the user and a shared protocol liquidity pool. While it sounds enticing to some, the application has been described as a casino. <a href=\"https:\/\/www.bankless.com\/read\/what-to-know-about-papertrade-s-launch\" target=\"_blank\" rel=\"noopener noreferrer\">In a recent report<\/a>, Bankless author David Christopher uses that exact term to describe the platform, saying:<\/p>\n<blockquote>\n<p>\u201cPapertrade is essentially a casino where losing traders gradually become owners of the house\u2019s future earnings.\u201d<\/p>\n<\/blockquote>\n<h2>$11 Billion in Open Interest Meets Just $54 Million in Backing<\/h2>\n<p>This hasn\u2019t stopped money from flowing in, and in fact, it has done the opposite. <a href=\"https:\/\/defillama.com\/protocol\/papertrade\" target=\"_blank\" rel=\"noopener noreferrer\">At launch, data shows<\/a> more than $14 million in USDC deposits, and that has increased to $118 million since then. Papertrade\u2019s stats show extremely high-leverage activity with very thin real capital behind it. <a href=\"https:\/\/papertrade.xyz\/\" target=\"_blank\" rel=\"noopener noreferrer\">Open interest is around $11 billion<\/a> across 2,349 positions at 11:45 a.m. Eastern time on Saturday, but there\u2019s only $54 million backing those positions.<\/p>\n<p>Under Papertrade\u2019s rules, winning traders might not receive their full profits immediately if the pool lacks sufficient funds. Their original margin would be returned, but their unpaid profits would enter a waiting line. Should markets descend into chaos during a black swan event, however, this mechanism could either amplify the financial fallout or help cushion the blow. Alongside this, traders who lose money receive PAPER tokens as a reward for their losses.<\/p>\n<h2>PAPER Tokens, $2,000 Trousers and Questions of Sustainability<\/h2>\n<p>The more traders lose, the more money becomes available to pay winners, and the more PAPER tokens are created. Those tokens might eventually generate income, but only if the platform continues operating successfully. Papertrade was founded by two cryptocurrency traders known as Jez and Blurr. Both have experience in the Hyperliquid ecosystem, although they operate under partially anonymous identities.<\/p>\n<figure id=\"attachment_854986\" aria-describedby=\"caption-attachment-854986\" style=\"width:1250px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-854986\" class=\"wp-caption-text\">At the time of writing, PAPER currently has a total supply of roughly 2.77 billion tokens, of which about 2.64 billion (around 95%) is staked to earn USDC rewards. Staker rewards have reached approximately $9.95 million so far, distributed at a 1% rate of realized PnL. Because transfers are disabled at launch, PAPER can only be minted from trading losses and then staked or unstaked; free transfers are scheduled for a later phase.<\/figcaption><\/figure>\n<p>The founders also attracted attention by <a href=\"https:\/\/garments.papertrade.xyz\" target=\"_blank\" rel=\"noopener noreferrer\">selling 100 pairs of custom-made paper trousers<\/a> for $2,000 each. The clothing featured expensive Italian fabrics and sold out in approximately 40 minutes, generating $200,000 in sales. Some buyers appeared genuinely interested in the clothing, while others speculated that owning a pair might eventually bring additional benefits.<\/p>\n<p>The trousers became something of a running joke within the cryptocurrency community this weekend, but they also illustrated how much attention the project had attracted before trading even began. What many are now wondering is whether all this attention is warranted, whether the project has any real staying power and whether it is ultimately little more than a casino masquerading as a perpetual <a href=\"https:\/\/www.bitcoin.com\/exchange\/what-is-a-dex\/\" target=\"_blank\" rel=\"noopener noreferrer\">decentralized exchange (DEX)<\/a>.<\/p>\n<div class=\"not-prose my-3 lg:my-4\">\n<div class=\"overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] hidden md:flex md:flex-row md:gap-3 lg:hidden\"><a aria-hidden=\"true\" tabindex=\"-1\" class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\" href=\"https:\/\/news.bitcoin.com\/bitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape\/\"><img alt=\"Bitcoin Traders Stack $4.5 Billion in Calls as $95K Bets Take Shape\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img alt=\"Bitcoin.com News\" loading=\"lazy\" width=\"28\" height=\"28\" decoding=\"async\" data-nimg=\"1\" class=\"size-7\" style=\"color:transparent\" srcset=\"\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=32&amp;q=75 1x, \/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75 2x\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75\"\/><\/div>\n<p><\/a><\/div>\n<div class=\"overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] hidden lg:flex lg:flex-row lg:gap-4\"><a aria-hidden=\"true\" tabindex=\"-1\" class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\" href=\"https:\/\/news.bitcoin.com\/bitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape\/\"><img alt=\"Bitcoin Traders Stack $4.5 Billion in Calls as $95K Bets Take Shape\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Fbitcoin-traders-stack-4-5-billion-in-calls-as-95k-bets-take-shape-150x150.png&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img alt=\"Bitcoin.com News\" loading=\"lazy\" width=\"28\" height=\"28\" decoding=\"async\" data-nimg=\"1\" class=\"size-7\" style=\"color:transparent\" srcset=\"\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=32&amp;q=75 1x, \/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75 2x\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75\"\/><\/div>\n<p><\/a><\/p>\n<div class=\"flex min-w-0 flex-1 flex-col justify-center gap-2\">\n<p class=\"m-0 line-clamp-2 text-base leading-[1.3] !text-[#67656E]\">Bitcoin&#8217;s options market is sending a curious message. With bitcoin trading above $82,000, calls account for 60.24% of outstanding options\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/crypto-news\/papertrade-perp-dex-pulls-in-118m-in-24-hours-with-1000x-leverage\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Papertrade.xyz is turning heads across crypto, pulling in $118 million in deposits with its eye-popping 1,000x leverage, where even a tiny price move can wipe out a trader\u2019s position. The numbers are pretty wild. Papertrade has roughly $11 billion in open interest across 2,349 positions, yet [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":79336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/79335"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=79335"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/79335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/79336"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=79335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=79335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=79335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}