To some extent, the mechanism by which Papertrade directly converts traders' PnL into protocol capital does have its merits. Nearly a week since launch, the cumulative PnL of Papertrade Traders has reached -$55 million, with more than half of the losses concentrated on the first day. On the most recent full trading day, the PnL was -$7.43 million. The daily percentage of profitable addresses is only about 20-25%, meaning only 1 in 4-5 participants is making a profit. The average loss is significantly higher than the median. On most days, the average loss exceeds $1k, while the median daily loss is just a few dozen dollars. The loss distribution shows a clear long tail, with a small number of addresses bearing much larger losses. Papertrade is now triggering tens of thousands of liquidations daily. However, these losses don’t just vanish into thin air—they flow into the protocol LP, which is used to pay winners, replenish the repayment queue, and mint PAPER for the losers. When the LP exceeds its cap, the surplus is distributed to PAPER stakers. Data: https://(dune.com)/defioasis/papertrade