Fees are 2% of a trader's gain after the price-impact haircut, plus 2% of the margin of liquidated positions, and half goes to PAPER stakers and half to the dev fee recipient. Profit the protocol-owned USDC pool earns above a $5 million cap is also paid to PAPER stakers.

Papertrade is a perpetual futures exchange on HyperEVM where every position is a trade against a single protocol-owned USDC pool, with no outside liquidity providers. Traders enter at the HyperCore mid price with no spread, slippage or funding. Losing traders are minted PAPER, which stakers lock to earn the protocol's USDC distributions.

Papertrade is a perpetual futures exchange on HyperEVM. Its contracts are upgradeable, owned by a timelock with a 7-day delay that is controlled by a 2-of-3 multisig.

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Papertrade

# Papertrade Revenue Methodology

## 1. Overview

Revenue is measured as the portion of fees retained by Papertrade, representing the protocol's earnings from trading activities and staking distributions. Trading fees generated from closed and liquidated positions, alongside pool surplus sweeps distributed to PAPER stakers, are included in this metric. These earnings are captured on the HyperEVM chain and normalized to reflect the protocol's financial performance before operating expenses.

## 2. Data sources

- **Blockchain events**: `PositionsClosed` and `Liquidated` events from `Exchange` contracts, and `Distributed` events from `PaperStaking` contracts, covering HyperEVM

## 3. Step-by-step calculation

### Component A: Trading fee extraction

- **Purpose**: To extract trading fees from position closures and liquidations.
- **Logic**: `PositionsClosed` and `Liquidated` events are parsed from `Exchange` contracts. The staker fee and developer fee are extracted from the `stakerFee` and `devFee` fields, respectively. These fee values are normalized by decimal precision and aggregated daily to determine the total daily trading fees (the sum of staker and developer fees) and the staker-specific fees.
- **Key fields**: `stakerFee`, `devFee`

### Component B: Staking distribution tracking

- **Purpose**: To capture the total assets distributed to stakers.
- **Logic**: `Distributed` events are parsed from `PaperStaking` contracts. The distributed amount is extracted from the `arg1` field, normalized by decimal precision, and aggregated daily.
- **Key fields**: `arg1`

### Component C: Pool surplus sweep calculation

- **Purpose**: To calculate the surplus sweep distributed to stakers beyond the standard staker fee.
- **Logic**: The daily gap is calculated as the difference between the daily distributed amount and the daily staker fee. A cumulative running sum of this gap is calculated over time. To prevent a lag in distribution from producing negative daily values, a running maximum of the cumulative gap (bounded at a minimum of zero) is tracked. The daily pool surplus sweep is then calculated as the daily change in this running maximum.
- **Key fields**: `staker_fee`, `distributed`

### Component D: Revenue aggregation

- **Purpose**: To combine trading fees and pool surplus sweeps to determine total revenue.
- **Logic**: Daily trading fees and daily pool surplus sweeps are summed to calculate the total daily revenue. The final values are zero-filled for days with no activity to ensure a continuous time series.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

PapertradePAPER

Revenue

Revenue

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