ShroomsAlpha

riftbound // equities // web3 // security

[ShroomsAlpha @ShroomsAlpha]

@plum229 My homie, that’s right! Teemo is the Pika for Riftbound!!

[Tindorr 🌯 @0xTindorr]

Papertrade is one of the more interesting perp designs I’ve seen recently.

@papertrade_xyz is launching with up to 1000x leverage, zero trading fees, zero funding and no traditional slippage, but imo that’s not even the most interesting part.

What actually caught my attention is how the exchange bootstraps liquidity and distributes ownership.

Papertrade is a synthetic perp exchange built on HyperEVM. Instead of matching your trade against another user or opening the corresponding position on Hyperliquid, it uses Hyperliquid’s BBO mid price as the reference and makes its own LP the counterparty.

So if traders lose, the LP grows. If traders win, they get paid from that LP.

The unusual part is that the LP starts from $0 and there aren’t traditional LPs depositing millions upfront. Trader losses are what capitalize the pool.

And the traders taking those losses receive $PAPER in return.

While the LP is below $2M, the current design mints 100 $PAPER for every $1 of LP gain generated from trader losses. Emissions then decline as the pool grows.

So the model basically turns trading losses into both liquidity and ownership.

If I lose $1,000 trading on Papertrade, that loss strengthens the LP, but I also receive $PAPER and become economically tied to the platform.

$PAPER can then be staked to earn a share of protocol revenue.

This is also where the “zero fees” model gets interesting.

Papertrade doesn’t charge the usual notional trading fee. Instead, profitable trades share a portion of their realized profit with the protocol.

So rather than extracting a fee every time someone trades, the protocol mainly monetizes when traders actually make money.

The full loop looks something like:

Trader losses capitalize the LP → losing traders receive $PAPER → winners get paid from the LP → part of winning profits becomes protocol revenue → $PAPER stakers receive a share of that revenue.

Basically, the people losing money on the platform gradually become owners of the platform.

There’s another interesting tradeoff though.

Because the LP starts from zero, it’s possible for winning traders to temporarily extract more than the pool can pay.

In that case, principal can be returned while unpaid profit enters a FIFO queue, then future trader losses refill the LP and pay those claims.

That also makes the main risk pretty obvious.

If winners consistently drain the LP faster than new losses replenish it, that queue can keep growing.

So imo the real Papertrade experiment isn’t 1000x leverage.

It’s whether you can build a perp exchange where trader losses bootstrap the liquidity, distribute ownership and eventually fund the protocol’s economics without relying on traditional LP capital.

Pretty weird model, but definitely one I want to watch once trading goes live.

[ShroomsAlpha @ShroomsAlpha]

@gangadhar01a @arcus_xyz INVITE

[ShroomsAlpha @ShroomsAlpha]

@AshenOCE My condolences…

[ShroomsAlpha @ShroomsAlpha]

@samuelsequinox All the best!!

[ShroomsAlpha @ShroomsAlpha]

@dRIFTBOUNDtcg This is the time to scoop my brothers… I’m glad someone noticed that the Korean Faker Galio is undervalued and unnoticed right now

[MERC Itzweird @itzsamleee]

Sold a playset of Aurora the other day to a local

[Enzo @enzo_tcg]

IS THAT WHAT I THINK IT IS???

[ShroomsAlpha @ShroomsAlpha]

@samuelsequinox how now 😪😭

[ShroomsAlpha @ShroomsAlpha]

just when I thought irelia couldn’t get cooked further 🥲

[Riftbound @playriftbound]

https://t.co/YVmWcN0Yt3

[Riftvesting @Riftvesting]

Is GG EZ Teemo PSA 10 gearing up for a new ATH?

Every sale since the $6,500 top, connected. Bottomed at $3,483 on Aug 29, now printing $4,900–$5,000, 5 of the last 10 above $4,900.

Needs +30% from here. Pop is up 59 copies in 8 days.

#Riftbound

[ShroomsAlpha @ShroomsAlpha]

@plum229 The $GGEZ cabal stonks my brother

[ShroomsAlpha @ShroomsAlpha]

@coinisup interested

[ShroomsAlpha @ShroomsAlpha]

@plum229 @BardyGG Guess I’m fked too 🤣 had one cancelled on me

[Khasino @KhasinoTTV]

FYI at RQ Macao + RQ Taiwan they will be awarding *ENGLISH* Best Ofs from Origins + Proving Grounds, and they will continue to do so until Vendetta release in Traditional Chinese.

This means we will see more English "Best Of" Ahri...

[ShroomsAlpha @ShroomsAlpha]

@FancyXBT Insane pickups

[Four Corners Collect @FourCorners_]

The riot store has proving grounds in stock btw

[ShroomsAlpha @ShroomsAlpha]

@plum229 Sign me up please.

[ShroomsAlpha @ShroomsAlpha]

@plum229 ggez.

[Riftatlas @PlayRiftatlas]

New ways to play Riftbound are here 🥳