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 Tvl Methodology

## 1. Overview

TVL is measured as the total value of assets deposited and held within the Papertrade exchange contract. Specifically, the USDC balance held in the exchange's HyperCore spot account is tracked, representing both trader balances and the protocol-owned pool. This metric is utilized to assess the liquidity, user trust, and overall scale of the Papertrade trading platform.

## 2. Data sources

- **Blockchain events**: `LedgerUpdate` events from HyperCore `events` contracts, covering HyperCore

## 3. Step-by-step calculation

### Component A: Ledger update extraction

- **Purpose**: Extract USDC transfer events related to the exchange contract
- **Logic**: `LedgerUpdate` events are parsed from HyperCore `events` contracts. Transactions are filtered to isolate those where the ledger type is `spotTransfer` and the asset is `USDC`. For each transaction, the sender, receiver, transfer amount, and transfer fee are extracted.
- **Key fields**: `sender`, `receiver`, `amount`, `fee`

### Component B: Net flow calculation

- **Purpose**: Determine the daily net flow of USDC into and out of the exchange contract
- **Logic**: Daily net flows are calculated by aggregating the extracted transfers. Inflows are identified where the receiver matches the exchange address, and the transferred amount is added. Outflows are identified where the sender matches the exchange address, and the sum of the transferred amount and the transfer fee is subtracted.
- **Key fields**: `net_flow`

### Component C: Cumulative balance aggregation and valuation

- **Purpose**: Calculate the running balance of USDC and convert it to USD value
- **Logic**: The daily net flows are aggregated cumulatively over time to determine the running asset balance of the exchange contract. The total balance is valued at a constant rate of one USD per USDC. A fill-forward strategy is applied to ensure continuous daily data coverage.
- **Key fields**: `tvl`

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

PapertradePAPER

Total value locked

Total value locked

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