>Claims to say the truth.
>Lies about being Paimon.
No, you are my emergency sandwhich, not Paimon.

Alternate take: Paimon was an ELF from HI3rd universe assigned to Traveler in order to monitor their progress through the simulated universe that is Teyvat. This whole thing happened in Honkai unified universe, after all.

Honestly if Paimon is actually not plot relevant in any way outside of being the Traveler's friend that WOULD be shocking at this point.