PAPER MILL

Thesis

Earn and stake PAPER cheaply from opposing BTC positions, reinvesting staking rewards into each new pair.

Strategy

• Pair: Split available USDC into a BTC long and short at 200x; after 5 rounds switch to 400x if PAPER cost more than 1.9 cents each. • Exit: Close both at a 0.3% move against a side (0.1% at 400x) or near liquidation, logging USDC lost and PAPER earned. • Compound: While flat, claim USDC staking rewards into the next pair, and stake earned PAPER once it reaches 1,000.

Exposure

• Holds: BTC pair and PAPER — Equal BTC long and short positions, plus the PAPER they earn. • Venue: Papertrade — Your USDC sits in your Papertrade account. • Leverage: 200x or 400x — Each side controls 200 or 400 times its margin in BTC. • Costs: Price impact, win fee — Each round loses some USDC to price impact; winning closes pay a 2% fee. • Data: api.hyperliquid.xyz — Live BTC order book from api.hyperliquid.xyz, fresher than Circuit's 15-second prices. • On unwind: USDC — Closing returns margin plus or minus results in USDC; staked PAPER stays staked.