Paper Quant ETH Hedge

Thesis

Mint PAPER cheaply with a delta-neutral ETH (and optionally BTC) long/short pair on Papertrade and stake it for USDC rewards.

Strategy

• Rebalance: When price moves the set share of bust distance from entry, close both legs, reopen, and stake PAPER once it reaches 1,000. • Sizing: One pair at the settings leverage, sized per leg from settings or from the full free balance split across both legs. • Pause: Stops opening when cost per PAPER exceeds 0.01 USDC, daily cost hits 300 USDC, or a PAUSE file exists.

Exposure

• Holds: ETH long and short — One isolated long and one isolated short on Papertrade, net delta near zero. • Venue: Papertrade — Synthetic perpetuals on HyperEVM settled against the Papertrade pool. • Leverage: 50x — Each leg is 20,000 USDC notional on 400 USDC margin; an older-leverage pair is closed and reopened at 50x (switch:50x). • Costs: Win haircut and fee — Winning legs pay Papertrade's move-sized haircut and a 2% win fee; wins may be queued. • Data: api.hyperliquid.xyz — ETH mid price for the 1.2% rebalance check; rpc.hyperliquid.xyz, rpc.hypurrscan.io, hyperliquid-json-rpc.stakely.io and hyperliquid.drpc.org for the PAPER rate, open-interest room and staking yield, which Circuit data does not carry. • On unwind: Close both legs — Stop leaves positions open; close them from the Terminal.