PAPER Pair Farmer

Thesis

Mint PAPER from losing BTC and ETH legs while paired winners recover part of the loss, then stake the PAPER for USDC rewards.

Strategy

• Paired sprint: Open equal-notional BTC and ETH long/short pairs, initially targeting 0.3% moves at 181x, and close losing legs before winners. • Cost and queue: Read live LP, mint rate and payout queue; widen new exit targets up to 1.5% to meet $0.002/PAPER and halt new pairs when controls trigger. • Sizing and staking: Use the whole paid allocation, cap each leg at $10M notional, record closes, refit the curve, and stake batches of at least 1,000 PAPER.

Exposure

• Holds: BTC/ETH pairs + PAPER — Equal-notional long and short positions use isolated USDC margin; minted PAPER earns rewards when staked. • Venue: Papertrade — Funds sit in Papertrade USDC; funding and any live calibration tests are separate Terminal actions. • Leverage: Initially 181x — Leverage falls as exit targets or the safety gap grow; a $220,000 allocation initially supports four $55,000 legs. • Costs: Win haircut and PnL fee — Model a 2% winning-profit fee and refit from actual net payouts, with a default $220,000 cumulative loss budget. • Data: Circuit + Papertrade — Circuit supplies prices and positions; exchange.papertrade.xyz supplies protocol-wide LP, queue and mint state missing from Circuit. • On unwind: USDC + staked PAPER — Closing returns paid USDC; queued claims and staked PAPER remain in the account after stopping.