PAPER Farm 2 ETH

Thesis

Opens matched long and short ETH positions on Papertrade so price risk mostly cancels while each closed pair mints PAPER, which it stakes for rewards.

Strategy

• Scarce side first: Opens the ETH side with less room first at 40x, then the opposite side with the same margin, each up to 45% of the allocation. • Exit on a move: Closes both legs together once ETH moves 1% from their average entry or nears liquidation, then starts the next pair. • Budget and staking: Stops opening at a 72% net loss budget, stakes PAPER it earns and claims rewards every 30 minutes.

Exposure

• Holds: ETH long and short pairs — Margin in matched ETH positions on Papertrade, plus staked PAPER. • Venue: Papertrade — Funds sit in your Papertrade account as USDC. • Leverage: 40x per leg — Each leg controls 40 times its margin; a lone leg can be liquidated. • Costs: Win fees, price impact — Papertrade's entry price impact and its fee on winning positions. • Data: Circuit — ETH price and Papertrade market limits come through Circuit. • On unwind: USDC on Papertrade — Closing positions returns USDC; staked PAPER stays staked.