ETH PAPER Farmer

Thesis

Pairs a 100× ETH long and short to realize losses for PAPER farming while offsetting Ethereum price exposure.

Strategy

• Entry: Split settled session USDC equally between an ETH long and short at 100×; wait if less than 200 USDC is available. • Reset: Close both legs on Hyperliquid's live price once ETH moves 0.75% against either, loser first, and reopen from settled session USDC. • Recovery: Close a single leg whose partner failed or is gone, and any leg within 0.1% of liquidation; leave earned PAPER unstaked.

Exposure

• Holds: ETH pair and PAPER — Holds opposing isolated ETH positions and earned PAPER, starting with at least 200 USDC. • Venue: Papertrade — Funds sit on Papertrade; trading requires access to its live exchange. • Leverage: 100× per leg — Liquidation sits 0.95% from entry, 0.2% beyond the 0.75% reset; a sudden jump before a close settles can still liquidate a leg. • Costs: Winning-close deductions — Winning closes pay a move-dependent haircut and a 2% fee. • Data: Hyperliquid, Papertrade — Streams Hyperliquid's ETH best bid and ask, the price Papertrade settles at, and reads Papertrade's live trading terms before each pair. • On unwind: Open legs stay open — Stopping leaves positions on Papertrade; turn on hard_kill first to close them. USDC and PAPER stay in the Papertrade account.