PAPER Farm 2

Thesis

Opens matched long and short BTC bets on Papertrade so price moves roughly cancel out, earning PAPER on every close and staking it for USDC rewards.

Strategy

• Hedged pair entry: Opens the side with less room first at 50x, then the other side, each using 45% of the balance or the remaining loss budget. • Exit: Closes both legs together once BTC moves 1% from the pair's average entry, or a leg nears liquidation, then starts the next pair. • Rewards: Stakes all earned PAPER after each close, claims USDC rewards every 30 minutes and stops opening at a 72% loss budget.

Exposure

• Holds: BTC long and short bets — Two equal and opposite BTC positions, each with 45% of your Papertrade USDC as margin. • Venue: Papertrade — Your USDC sits in your Papertrade account; earned PAPER is staked there. • Leverage: 50x per leg — Each leg controls 50 times its margin, so a 2% move against a leg can wipe out that leg. • Costs: Papertrade win fees — Papertrade takes a fee on winning legs and prices in a small entry cost per trade. • Data: Circuit — Hyperliquid BTC prices and Papertrade limits come through Circuit. • On unwind: USDC on Papertrade — Closing leaves USDC in Papertrade; staked PAPER stays staked until you unstake it.