PaperTrade Hits $678B Notional Volume in 24 Hours, Founder Jez Says

The headline volume is less telling than the mechanism: liquidity sourced from users' cumulative losses, with losers compensated in Paper tokens, means the protocol's depth depends on a continuous stream of losing traders rather than external market makers. That model is untested under stress, and the reliance on Hyperliquid testnet precompiles introduces a dependency on infrastructure not designed for production load. Whether the loss-funded pool can absorb sustained one-sided positioning, and whether Hyperliquid precompiles remain freely accessible, are the open questions.