PaperTrade, Another perpetual contract DEX 1/First look at the team The co-founder is @ izebel_ eth, and his resume is very impressive. Former Morgan Stanley and Millennium Management analyst, later became a full-time partner at Standard Crypto. Starting from 2024, I started my own angel investment and invested in FOMO. I feel like I have a system on me. 2/Look at the product Mechanistically, PaperTrade is somewhat similar to FCoin 2.0, with the difference being the subsidy recipients. FCoin subsidizes all traders, and trading is mining; PaperTrade only subsidizes contract losers, and losses are equivalent to mining. The mined PAPER can be pledged and receive USDC dividends. How did FCoin die back then? Two things, one is that the issuance of FT is linked to trading volume, and the larger the volume, the more aggressive the trading; The second is centralized custody, where the hole of over 7000 BTC was hidden for two years before it exploded. PaperTrade has fixed both of these points. PAPER issuance is inversely linked to LP balance, the healthier the pool and the less it is issued; All on chain, LP balance, debt queue, and issuance curve can be checked. It sounds like there has been significant progress. But it also brings three issues that FCoin does not have. The opponent has changed. FCoin is a matching system, while PaperTrade is a user vs LP system. FT holders bet on the long-term survival of the exchange, while PAPER holders bet on individual investors losing to market makers in the long term. The latter has indeed been established in history, but the dealer's capital starts from 0 and the soft top is 5 million. Mingpai's fund structure. PaperTrade LP can temporarily go bankrupt, with the winner's profits queued in the FIFO queue and waiting for the subsequent losers to pay. Even better, the shorter the LP, the faster the PAPER is sent, encouraging you to trade at this time. Prophecy machine risk. The price is directly read as the buy one sell one midpoint of Hyperliquid, without deviating from the circuit breaker, but it cannot be said that there is no risk of manipulation. In a word, the risk of FCoin lies in people, while the risk of PaperTrade lies in mathematics. 3/Conclusion If you enter as a contract trader and face such a casino: Zero front-end costs, but if you win the profit, you have to discount it; Big win, profits may have to wait in line for those behind to lose; I lost and received a pile of temporarily unsold PAPER (which cannot be transferred in the early stage, can only be pledged).