PaperTrade has launched on HyperEVM, allowing users to trade directly against the protocol’s shared USDC liquidity pool, with losses flowing into the pool and profits paid out by the pool. It offers up to 1,000x leverage; losses mint PAPER, which has an initial supply of zero and no premine. Staking PAPER allows users to participate in revenue sharing. During the initial launch, small orders queued up, and the potential risk of manipulating Hyperliquid’s prices sparked controversy. The official team said it would mitigate the issue by raising the open interest cap and tighten it later. After the hype dies down, retaining users will depend on future revenue sharing and PAPER’s valuation.