PaperTrade gives losing traders a cut of the pool that took the other side of their trades. The protocol offers synthetic BTC and ETH perps with high leverage on HyperEVM. Every position settles against one liquidity pool at Hyperliquid’s midprice. Trader losses fill the pool and mint PAPER at the same time. Staking that PAPER earns a share of protocol fees and any surplus above $5M. Farmers who lose on purpose for that payout also fund the pool that pays winners. Some farming strategies add PAPER faster than they add capital. A hedged farmer sends little to the pool, while one who simply gets liquidated adds as much as any losing trade. The cut grows when the people who come to farm stay to trade.