Papertrade said transfers of PAPER outside contracts will remain closed for now and that it is changing fee and token-minting rules, according to a BlockBeats flash. The protocol cited the risk that external perpetual shorts could make manipulation of its pool easier.
Derivative market response
HIP-3 deployer Paragon paused PAPER pre-market perpetual trading and force-settled open positions at about $0.026296. Aster switched its PAPER pre-market perpetual to reduce-only mode and said it was preparing to delist it.
Platform metrics fall
BlockBeats reported BTC positions falling from about $390 million to $230 million and ETH positions from $150 million to $66.3 million after the announcement. Platform funds fell about 7%, while TVL declined to roughly $58.3 million from a prior peak near $100 million.
Team response
PaperTrade co-founder jez said long-term value depends on attracting real traders rather than free trading and that the changes were based on the first week’s data. These figures and statements are attributed to the flash and are time-sensitive.
Source: BlockBeats flash.