PaperTrade restricts PAPER token transfers to prevent manipulation

PaperTrade, a perpetual futures decentralized exchange (DEX) on HyperEVM, has announced that its native PAPER token will not support off-contract transfers. The protocol team cited risks of manipulated trading that could threaten the platform's solvency as the reason for preventing users from sending tokens to other wallets or listing them on exchanges.

While the token cannot be transferred, holders can still stake PAPER to collect distributions in USDC. The protocol's unique model mints PAPER exclusively for traders who realize losses or face liquidation, rewarding them at an initial rate of 100 PAPER per $1 lost. This design aims to reward active trading rather than passive speculation, as profitable traders do not earn the token.

Since its launch on October 10, 2026, PaperTrade has reported substantial activity, including over $1 trillion in notional trading volume facilitated by leverage of up to 1,000x on assets like Bitcoin and Ethereum. The protocol operates by matching trades against a single liquidity pool, known as the Martingaler LP, which is funded by trader losses.