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DeFi Vaults Issue #68

Parcl: DeFi Meets Real-estate on Solana + DeFi Market Research

⚡️What’s new?⚡️

🏦 DeFi Yield Overview: Stablecoins & LSTs

💸 Stablecoin Yield Spotlight: JEUR/PAR Vault via Polygon

🐦 Deep Dive: Parcl: DeFi Meets Real-estate on Solana

🏦 Yield Overview

Liquid Staked Tokens

Stablecoin Yields List

Ethereum

Polygon

Optimism

Avalanche

Arbitrum

💸 Stablecoin Yield Spotlight - JEUR/PAR via Polygon

🏡 Parcl: DeFi Meets Real-estate on Solana

TL;DR

  • Parcl is a decentralized application (dApp) on Solana that aims to democratize access to real estate investing.

  • The platform enables users to invest in and trade real estate markets (using USDC) in various locations, including New York, California, and Paris.

  • A "parcl" is a digital representation of the price per square foot in a specific geographic area, backed by crypto assets.

Introduction

Parcl is a Solana dApp extending access to real estate investing for the masses. Real estate has long been a cornerstone of the “American Dream,” yet participation demands large amounts of capital as well as exceptional credit. With Parcl, users can invest in real estate with any amount of funds!

Parcl allows users to invest in and trade geographical real estate markets on the Solana blockchain—including New York, California, Florida, and more— which can be used for directional investment and hedging.

What are Parcl’s? — How Does Parcl Work?

A Parcl is a digital representation of the price per square foot in a given geographic area collateralized by crypto assets. Parcl uses real estate listing data, real estate transaction data, property tax record data, and geospatial data to create the ‘Parcl Price Index.’

Using the Parcl price index, Parcl determines the price per square foot of a specific neighborhood or city to determine the price of the corresponding parcl.

Homeowners Association NFTs

Parcl’s homeowner association (HOA) NFT grants holders perks including early access to trading, liquidity pools, staking rewards, future airdrops, and more. the HOA NFTs give users a chance to own an asset that will give them real utility stemming from a platform with a unique use case.

How To Invest In a Parcl?

Methodology

Parcl features a simple interface where users can buy (long) or short real estate markets —through the purchase of Parcl's— depending on how they think the market will move.

If you think a city's real-estate market value is going down from the current price you can open a short position, and if you think the price is going up you can open a long position. If the price moves in the direction you’ve predicted you’ll be in profit and can close your position at any time to realize the value of your investment. Inversely, if the price moves in the opposite direction of what you predicted, you might consider cutting your losses or holding on until the price movement changes.

Furthermore, whichever position type (long or short) makes up a majority of the pool, will decide the fees paid for entering the pool. For instance, since the majority of the positions for the Brooklyn parcl are long if you open a long position, you’ll pay lower fees than if you were to open a short position.

Once a user deposits USDC for a long or short position, they’ll receive a Parcl liquidity pool (LP) token to represent their share in the pool.

Users seeking a neutral position can provide liquidity to pools with high trading activity to earn fees on trades.

How To Use Parcl

  1. Visit App.Parcl.co and connect your Solana wallet.

  2. Swap to USDC

  3. Pick a real-estate area

  4. Buy the asset (long), if you believe the price will go up

  5. Short the asset, if you believe the price will go down

  6. Exit position at your desired price


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