Parcl (PRCL): Revolutionizing Real Estate Trading With Perpetual Contracts

Real estate markets, while an essential component of the overall financial ecosystem, aren't particularly known for high levels of liquidity. High barriers to entry for smaller investors, inflexible markets and incomplete location-based data on price movements have all made real estate investment a less popular choice than trading stocks, commodities or cryptocurrencies. While metaverse real estate may offer an innovative alternative to physical real estate investment, nothing compares to the tangible value and stability of physical real estate.

Parcl (PRCL) is a Solana-based decentralized real estate trading platform that aims to change the status quo by introducing index-based liquid trading opportunities. By taking long and short positions on city-specific real estate indices maintained by Parcl, users can access a highly liquid form of trading and start with a minimum investment of as little as $1.

Key Takeaways:

• Parcl (PARCL) is a decentralized digital real estate protocol that facilitates index-based trade for specific geographical markets.

• Parcl's real estate investment platform covers major U.S. metropolitan areas and several other global real estate markets.

• In addition to real estate index trading, Parcl offers opportunities to provide liquidity.

What Is Parcl?

Parcl (PARCL), a decentralized platform that offers location-based real estate indices for perpetuals trading. It maintains an automated market maker (AMM) and offers both perpetuals trading and opportunities to provide liquidity.

Parcl obtains and updates physical real estate market data from many sources and repositories in order to derive indices for each tracked locality. The indices are based on highly detailed data, and boast granularity to the level of accounting for prices per square foot or meter. As of mid-April 2024, Parcl maintains indices for 26 localities, including several large U.S. cities, Paris, London and Solana Beach, a small Californian community that inspired the name of the Solana (SOL) blockchain. Incidentally, Parcl is based on that very chain.

The project's team specifically noted Solana's extremely high throughput capacity of 50,000 transactions per second (TPS) and meager transaction fees of less than a cent as the key reasons for choosing blockchain.

Parcl’s Origins

Parcl launched its operations in early 2022. In January 2023, the platform upgraded to v2, and in late 2023 it underwent another major upgrade to v3. The third (and current) version has seen several key improvements, including enhanced risk management for traders, better capital efficiency and a single, scalable liquidity pool.

In December 2023, the Parcl protocol announced two initiatives to reward its user base and attract new members — Points Program and Referral Program. The former awards loyalty points to active users of v2 and v3, while the latter incentivizes members to refer new traders to the Parcl platform.

Having operated without its own native cryptocurrency for its first couple of years, Parcl launched its PRCL governance token on Apr 16, 2024. The token generation event (TGE) was also accompanied by the start of an airdrop campaign, which allocates 8% of the token's supply to eligible users. The abovementioned Points Program plays a crucial role in the airdrop, with the program's loyalty points among the major determinants of airdrop eligibility.

How Does Parcl Work?

Real estate investors who use Parcl can open long and short positions on city-specific indices designed to accurately track real-world property values in the respective localities. Unlike traditional real estate investing, in which the majority of trade is based on per-property prices, each Parcl index is based on the overall market for the particular city, allowing traders to speculate on city-wide price movements. In order to trade, users need to deposit USDC stablecoin as collateral.

In addition to locality-specific real estate trading, Parcl offers investment opportunities to liquidity providers (LPs). Those LPs who contribute to the AMM's liquidity pool are rewarded with a share of revenues from on-platform trading activity. The pool distributes 70% of the trading fees to LPs, based on the amounts they contribute.

Parcl Labs Price Feed

Implemented by Parcl Labs, the company behind the protocol, the Parcl Labs Price Feed (PLPF) is a major component of the platform. PLPF is designed to source real estate transaction data from a multitude of sources. The data is then used to update city indices daily at each city and locality level. This allows Parcl to run some of the most sensitive and granular indices measuring real estate values.

Parcl Labs goes to great lengths to ensure the accuracy, reliability and transparency of the data it collects. PLPF data quality assurance is a multi-step process that involves:

• Data cleaning and deduplication to remove incorrect and duplicated entries

• Third-party attestation to ensure the transparency of the collected data

• Use of spatial data technology to correctly assign each real estate transaction to its precise geographic location

City Indexes

As of April 2024, Parcl tracks 26 regional indices, although not all of these may be available to traders at all times, depending upon on-platform activity. The indices include all the largest U.S. cities, such as New York, Miami, Chicago, Los Angeles and San Francisco; San Diego County's Solana Beach; two major European capitals, Paris and London; and the country-wide U.S. real estate market index.

What Is the Parcl Crypto Token (PRCL)?

PRCL is the platform's newly introduced governance token. It was launched on Apr 16, 2024, envisioned to let its holders actively participate in on-platform governance processes. It also grants token holders access to institutional-quality real estate data through an API powered by Parcl Labs. In the future, the token will provide additional benefits related to on-platform trading via the Perpetual Points system.

The PRCL token has a total supply of 1 billion. Its tokenomics details don't explicitly specify any supply cap. The token's supply allocation shares are as follows:

• Community, Growth & Incentives — 36%

• Early Supporters & Advisors — 28%

• Core Contributors — 21%

• Ecosystem Fund — 15%

Part of the allocation for Community Growth & Incentives (8% of the total supply) will be distributed via airdrops to Parcl’s early adopters and community partners.

Where to Buy PRCL

You can buy PRCL on Bybit through a Spot pair with USDT (PRCL/USDT). Additionally, until the end of April 2024, you can take advantage of Bybit's current campaigns to earn a share of the 50,000 USDT pool prize. Bybit's Spot and Derivatives markets provide you with opportunities to trade hundreds of cryptocurrencies and crypto-based products. If you don’t have a Bybit account, you can easily register for one to access our range of products and assets.

Closing Thoughts

Traditional methods of investing in real estate have generally been restrictive and inflexible for many traders, particularly those with limited capital. The Parcl platform is now leading the way in changing this market niche. Thanks to the protocol's unique business concept, real estate investment is now open to a broader segment of investors.

However, more than the benefits of flexibility and better liquidity distinguish Parcl. The protocol's rigorous data collection mechanism ensures that users can now access high-quality, granular data that few other analytics platforms can provide. As such, Parcl might be described as a multi-purpose environment that serves the needs of not only traders and LPs, but also real estate analysts and market pundits. In short, anyone interested in real estate markets will find something useful for themselves on Parcl — the world's first decentralized index-based real estate trading protocol.

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