Ansem says Papertrade’s new model could reshape high-leverage speculation

Crypto trader Ansem said Papertrade may represent an innovation with long-term potential, arguing that the project introduces a different way to monetize speculative trading. In his view, high-leverage perpetuals have long been among the crypto industry’s most profitable products, and demand for speculative trading is likely to remain in place. According to Ansem, Papertrade lets users open and close synthetic 1000x leveraged positions without creating real market impact. Its business model routes trader losses to support an on-chain liquidity pool, while losses above a certain LP size cap are distributed to PAPER stakers. He said the amount allocated to PAPER stakers in the platform’s first week exceeded $50 million. Ansem contrasted that structure with traditional perpetual DEXs, which mainly earn revenue from trading fees. He said Papertrade instead tries to turn trader losses directly into a source of platform income. He also argued that the model could retain advantages even if the ratio of winners to losers moves closer to 50:50 after the LP reaches a certain scale. Still, he said whether the platform can keep attracting users, maintain liquidity and achieve long-term growth remains to be tested by market performance.