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How Papertrade Turns Liquidations Into Ownership

A new perps exchange pioneers one of crypto’s strangest and most innovative trading mechanisms yet.

Jack Inabinet
May 14, 2026 • 4 min read

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Most DeFi protocols only reward profitable traders.

Papertrade flips the model entirely, rewarding its users for losing. The result is one of the most unconventional, reflexive, and undeniably innovative mechanisms for onchain trading that the crypto industry has seen in years.

Developed by pseudonymous X user @izebel_eth, Papertrade is an upcoming fully on-chain perpetual futures exchange built on Hyperliquid via HyperEVM. The protocol promises traders:

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How Papertrade Turns Liquidations Into Ownership

Written by Jack Inabinet

932 Articles • View all

Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.