The craziest casino in the cryptocurrency industry has opened tonight: MIT Quantitative+Chain Whale Operation, 1000 times leverage, loss making mining, and 1-hour trading volume exceeding 100 billion US dollars! Papertrade was launched for about an hour, with a trading volume exceeding 102 billion US dollars, open contracts of 9.35 billion US dollars, and TVL of about 120 million US dollars. The platform does not require any initial market making funds at all. All users bet against the agreement, and the more users lose, the larger the liquidity pool of the agreement. Losers can still receive PAPER and share the future profits of the trading platform. Founder Jez (@ izebel_ eth) graduated from MIT in 2015 with a degree in Computer and Management Science. He later worked at Morgan Stanley for 4 years and also served as a Venture Partner for Standard Crypto, a cryptocurrency venture capital firm. His personal investment projects include FOMO, neutral, and others. He is still a master of poker and participated in the WPT Prime Championship of the World Poker Tour in 2024, ultimately finishing 7th with a prize of 186000 US dollars. Quantitative trading, VC investment, and professional level poker experience have basically combined financial markets, risk pricing, and game theory. Another founder, Blurr (@ Blurr), is more inclined towards native players on the chain. He entered Crypto around 2017 and experienced early on chain opportunities such as CryptoKitties, Compound, Curve, and even deployed Refund (RFD). Papertrade's trading design is very aggressive. It is deployed on HyperEVM and uses pre compiled contracts to directly read the buy one sell one midpoint of the Hyperliquid order book, thereby synthesizing BTC and ETH perpetual positions. It does not actually open hedging positions on Hyperliquid, so there are no traditional funding rates, slippage points, or spreads. It sounds like a free trade, but closing a profitable position will be subject to asymmetric profit reduction, especially for arbitrage profits with minimal price fluctuations. This logic clearly absorbs Rollbit's high leverage casino model, but moves pricing, positions, and profit and loss settlement onto the chain. The most creative aspect is the Martingaler liquidity bootstrap mechanism. Traditional casinos must first prepare a large amount of capital in order to compensate the winner. Papertrade's LP starts at $0, and the losses of the losers directly replenish the funding pool. If the banker only has $5 million and the winner needs to receive a profit of $6 million, the agreement can pay $5 million first, and the remaining $1 million will enter the FIFO debt queue, waiting for future traders to gradually repay their losses. It solves the problem of insufficient initial funds with future loss cash flow, but this debt will not disappear out of thin air, and in extreme cases, the winner may not receive all profits in the long run. Looking at PAPER again, token economics is the core of this design. There is no pre mining, no team and VC allocation, no airdrop, only when there is a real transaction loss or liquidation, can tokens be minted. When the LP tracking balance is below $2 million, for every $1 loss, a maximum of 100 PAPER will be cast according to the basic rules. After exceeding the threshold, the issuance speed will be reduced according to the decay curve. PAPER pledgers can receive the USDC income allocated by the agreement. When the LP exceeds the target balance of $5 million, the excess additional income will be distributed to the pledger according to the mechanism. PAPER has issued approximately 1.49 billion coins, of which 1.37 billion coins have been pledged, with a cumulative pledge reward of approximately $248000. Papertrade may be the most radical exchange economy model experiment in the Hyperliquid ecosystem this year. It integrates the profits of market makers, the advantages of casino makers, and the token incentives of DeFi into the same system, and even turns the losses of ordinary traders into a means of protocol financing.