Paragon earns a deployer share of trading fees on the perpetual markets it has deployed under Hyperliquid's HIP-3 framework. Markets execute on Hyperliquid's HyperCore L1 order book; it does not operate its own matching engine. The default HIP-3 fee split allocates 50% of each user-paid fee to Hyperliquid and 50% to the deployer; deployerFeeScale is 1.0, so the standard split applies.

Paragon offers USDC-settled perpetual contracts on crypto index and basket products (BTC dominance, TOTAL2, OTHERS) and AVGO. All 4 markets are deployed under the HIP-3 `para` namespace and execute on Hyperliquid's HyperCore order book.

Paragon is a HIP-3 (builder-deployed perpetuals) deployer on Hyperliquid, deployed by wallet 0x8888888c43cbb7e1c4132542e46831bffd866ed3. Paragon is operated as a private company; no token has been issued.

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Derivative exchanges

Paragon

# Paragon Open interest Methodology

## 1. Overview

The total USD notional value of all active perpetual contracts on Paragon is measured by open interest at a given point in time. It is utilized as a key indicator of speculative activity, market liquidity, and capital at risk within the protocol's perpetual markets. By aggregating the absolute net positions of all traders across active markets, insight is provided into the depth and growth of the platform's derivatives offerings. Positions that have been closed or liquidated within the period are excluded from this metric, reflecting only active market exposure.

## 2. Data sources

- **Blockchain events**: Node fill events from Hypercore nodes, covering the Hypercore chain

## 3. Step-by-step calculation

### Component A: Node fill extraction and net position change calculation

- **Purpose**: Extract raw trade fills and calculate daily net position changes for each trader and market.
- **Logic**: Node fill events with the `para:` prefix are filtered from Hypercore node records. For each trader and market, the daily net position change is calculated by summing the trade sizes, where buy trades (where `side` is 'B') are treated as positive values and sell trades are treated as negative values.
- **Key fields**: `timestamp`, `trader_address`, `market_id`, `side`, `size`

### Component B: Running position tracking and propagation

- **Purpose**: Reconstruct the continuous active position size for each trader across all markets.
- **Logic**: A running position is calculated for each trader and market by taking the cumulative sum of daily net position changes over time. For days without trading activity, the running position is carried forward to ensure active positions are maintained and not reset to zero.
- **Key fields**: `timestamp`, `trader_address`, `market_id`, `net_change`

### Component C: Market open interest unit aggregation

- **Purpose**: Aggregate individual trader positions into total market open interest units.
- **Logic**: The absolute values of all active trader positions are summed for each market and divided by two to represent one-sided open interest. This aggregation is performed daily to determine the total outstanding contract units per market.
- **Key fields**: `timestamp`, `market_id`, `running_position`

### Component D: Mark price derivation and USD valuation

- **Purpose**: Determine the daily valuation price for each asset and calculate the USD value of open interest.
- **Logic**: Daily end-of-day mark prices are extracted from the latest observed fill price for each asset. For days with no trading activity, mark prices are carried forward from the most recent available price. The total open interest units for each market are then multiplied by these daily mark prices to determine the final USD notional value of open interest.
- **Key fields**: `timestamp`, `market_id`, `price`, `oi_units`

## Comparability note (one-sided convention)
One-sided open interest is reported, where each matched contract is counted only once (representing either the long or the short side of the position, but not both). Figures reported by sources utilizing a two-sided open interest convention (where both the long and short sides of every contract are counted) are approximately double (2x) the values presented on this platform.

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

Total USD notional value of all open positions on a derivatives protocol at a point in time.

Paragon

Open interest

Open interest

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