My take on how papertrade will end up: Whoever thinks zero-slippage trading is possible is simply misunderstanding what markets are about. There's always expected value to be donated to whoever knows a little more about how the price will move. People do put some value in paper, though, so this is imo the most likely way it will play out: 1. The house funds will get depleted (most likely relatively slowly, for a few days or weeks) until $2m 2. At $2m people will try to donate to the house to farm paper. As long as paper is relatively valued, this will hold. But it's not a never-ending protection! Paper holders will get diluted until a point where this fails further an further. 3. Not having a public venue to trade paper is a bliss right now. If there was one, all the farmers would try to sell and the market would discover that it's nearly valueless aside the ability to farm itself. That would give a very good argument not to lose to the house to farm paper – in the end, it's better to just buy paper if you think the value would be higher. 4. At some point, there will be no one willing to "buy" newly issued paper for dollars, and that's when the manipulation/good trader leak will overcome and make the product insolvent. This is already visible. The cheapest you can get paper is 100 paper/$. Usually it's ~3x cheaper. How, with ~6b paper outstanding at the time of writing, that's AT LEAST $60m in losses that generated the paper. The product captured $26.3m to buybacks and $3.5m to house funds. Where did the remaining funds go? They were extracted already. $30m+ of funds already leaked from the system and we should expect more to come. At a point the market will realize this leak is not worth having exposure to and paper will become nearly worthless. The house balance will go negative, sometimes even payout itself out, until it doesn't. Just think what happens if the system stops minting paper (i.e. it becomes ± worthless). Don't get me wrong, paper can make some money on actual clients coming to gamble/trade, but imo it's unrealistic a few days after launch. Biggest part of current usage is paper farming. The value leak can be so fast that I think it's extremely risky (imo improbable) to assume revenue will just overtake it. It was a long-known issue with papertrade and founders have no intention on fixing this even after seeing it in action. I'd have no hopes investing in paper based on a thesis that something will change. This bears some to the LUNA<>UST<>USDC situation, but with PAPER<>deposited USDC<> USDC. Stay safe out there and away from solvency gambling.