Papertrade perp DEX draws $118m in deposits with 1,000x leverage
A new Hyperliquid-based perpetuals exchange, Papertrade.xyz, has attracted $118m in deposits with leverage of up to 1,000x, according to data from paperdash.xyz and DefiLlama.
Why it matters: The platform's $11bn open interest against just $54m in backing raises questions about what happens when traders try to cash out.
Key points
- Papertrade.xyz reported $118m in total value locked at 11 a.m. Eastern time on Saturday, 10 October 2026, up from more than $14m in USDC deposits at launch.
- Open interest stood at about $11bn across 2,349 positions, backed by just $54m, according to the platform's statistics.
- The founders, known as Jez and Blurr, sold 100 pairs of custom paper trousers for $2,000 each, raising $200,000 in about 40 minutes.
Papertrade.xyz, a new perpetuals exchange built on Hyperliquid's HyperEVM layer, has pulled in $118m in deposits with leverage of up to 1,000x, Bitcoin.com News reports. Data from paperdash.xyz and DefiLlama put total value locked at that level at 11 a.m. Eastern time on Saturday, 10 October 2026, up from more than $14m in USDC deposits at launch.
The figures are striking. Eastern time on Saturday, but only $54m backs those trades.
Under Papertrade's rules, winning traders may not receive full profits immediately if the pool lacks funds, though their original margin is returned. Losing traders receive PAPER tokens.
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