Papertrade traders net lost $63.2M, 86% paid to PAPER stakers

The scale of redistribution here is the story: a venue barely nine days old routed the overwhelming majority of trader losses straight to its stakers, a model that works only while new deposits keep arriving. The gap between $335 million deposited and $249 million realized in losing closes suggests a large share of capital is still sitting on open positions, so the loss figure is likely incomplete rather than final. The Paragon HIP-3 mark on PAPER is the number to watch — whether staking yields stay attractive as deposit growth slows is the open question.