PAPER MILL ETH

Thesis

Earn PAPER cheaply on Papertrade with hedged 50x ETH long/short pairs whose exit widens as the PAPER mint rate falls.

Strategy

• Pair: Hold one equal ETH long and short at 50x, each up to 49% of capital and 70% of open-interest room, and reopen as soon as a pair closes. • Exit: Close both legs, loser first, once ETH moves 0.4%, 0.5% or 0.75% from the entries' midpoint as the mint rate falls past 10 and 7 PAPER per $1. • Limits: Skip new pairs when 1,000 PAPER would cost over $100 net; it farms with no end date unless you set one.

Exposure

• Holds: ETH pair and PAPER — Two opposite ETH positions on Papertrade with USDC margin, plus the PAPER they mint, left unstaked. • Venue: Papertrade — Trades on Papertrade from the wallet you start it on; fund your Papertrade balance before you start. • Leverage: 50x per leg — Liquidation sits 1.95% from entry, beyond every exit; a leg within 0.75% of it closes at once. • Costs: Haircut and winner fee — Winning closes pay Papertrade's move-dependent haircut and a 2% fee, about 15 to 18 cents per $1 the loser loses. • Data: External venue feeds — api.hyperliquid.xyz streams ETH bid/ask prices; exchange.papertrade.xyz gives haircut terms Circuit data lacks. • On unwind: USDC and PAPER — Stopping leaves open legs on Papertrade; turn on hard_kill first to close them. USDC and PAPER stay in the account.