PAPER MILL ETH

Thesis

Earn PAPER from opposite ETH positions at 50x, closing pairs after 0.6% moves and staking the earned PAPER.

Strategy

• Pair: Open equal ETH longs and shorts at 50x, using up to 45% of capital per leg, and reopen after closing. • Exit: Close both legs when ETH moves 0.6% against either, loser first; also close unhedged legs or legs near liquidation. • Budget and staking: Stop new pairs at the loss budget, default 20% of capital; stake earned PAPER and claim rewards every 30 minutes.

Exposure

• Holds: ETH pairs and PAPER — Opposite ETH positions use USDC margin, while earned PAPER is staked. • Venue: Papertrade — Positions and staking sit in the Papertrade account funded with USDC. • Leverage: 50x per leg — Each ETH position is 50 times its margin. • Costs: Haircut and winner fee — Winning closes pay a move-dependent haircut and a 2% fee. • Data: External feeds — api.hyperliquid.xyz streams ETH prices; exchange.papertrade.xyz provides live trading terms unavailable through Circuit. • On unwind: USDC and staked PAPER — Closing positions returns USDC; staked PAPER stays staked. Stopping alone leaves open positions in place.