PAPER MILL ETH

Thesis

Earn PAPER from equal 50x ETH long and short positions, close on 0.5% moves, and stake the minted PAPER for rewards.

Strategy

• Pair: Open equal ETH long and short positions at 50x, cap each leg's margin at 15% of session capital, and reopen after closing. • Exit: Close both legs when ETH moves 0.5% against either, loser first; close near-liquidation or unhedged legs. • Budget and stake: Stop new pairs at the loss budget, 20% by default; stake minted PAPER and claim rewards every 30 minutes while monitoring payouts.

Exposure

• Holds: ETH pair and PAPER — One ETH long and short on Papertrade, USDC margin, and PAPER earned from closes. • Venue: Papertrade — Requires room on both sides; allows 20 seconds after the first fill to confirm its partner, closes fills immediately on an open failure, and waits at least 5 minutes before retrying. • Leverage: 50x per leg — Each leg uses up to 15% of session capital as margin for an equal-sized ETH position. • Costs: Haircut and winner fee — Tracks closed results after Papertrade's winning-payout haircut and 2% winner fee against the loss budget. • Data: Live price and terms — api.hyperliquid.xyz supplies streaming ETH prices; exchange.papertrade.xyz supplies trading terms absent from Circuit. • On unwind: USDC and staked PAPER — Closing positions returns USDC or queues winning payouts; PAPER stays staked, and stopping leaves open positions in place.