Winners queue up for money, while losers lose their positions and get airdrops: Understanding Papertrade, the article "Losing money is mining"

Shenchao TechFlow Compilation: HONKAYO Papertrade is trying to build a sustainable exchange that starts cold-starting from scratch. Its core innovation is to use a "loser loses" mechanism to replace the traditional market maker (LP) model. The platform promises to provide up to 1000 times leverage and realize the immediate refund of profit margins through a unique compensation queue system. Uncashed profits are converted into public creditor's rights of the platform, and subsequent losers exchange supplementary funds for future income binding rights. Product design faces two key challenges: one needs to maintain a stable loss stream to ensure profit-making payments, and the other needs to verify feasibility through real market fluctuations before public contracts and audits are completed. According to the plan, the deposit function will be open on October 8, and the transaction function will be launched on October 10. TL;DR: A compensation queue system with 1000 times leverage, no liquidity provider, and using future trader losses as the source of redemption.