This article was sponsored by Long " Leo Leo LEO is the first metaverse game application in the SGR ecosystem. In the future, it will focus on the eight elements of metasurverse: identity, friends, immersion, low latency, diversity, everywhere, economic system and culture, and make a perfect game with social attributes, attributes, and script attributes. Combination, and through the combination of social ++ game flat economy, it can meet people's needs for work, entertainment and consumption in the virtual world, thus presenting a classic METAVERSE ecology see more " Pham @CASTELIAN Posted in Solana Solana Founded in late 2017 by former Qualcomm, Intel, and Dropbox engineers, Solana is a single-chain Proof-of-stake stake protocol focused on providing scalability without compromising decentralization or security. At the heart of Solana's scaling solution is a decentralized clock called Proof of History (PoH), designed to solve the problem of time in a distributed network without a single trusted source of time. By using a verifiable delay function, PoH allows each node to generate timestamps locally using SHA256 calculations. This eliminates the need to broadcast timestamps across the network, increasing overall network efficiency. SOL is the native token of the Solana blockchain. Solana uses a Delegated Proof-of-stake consensus algorithm to incentivize token holders to validate transactions. As part of Solana's secure design, all fees will be paid in SOL and burned, reducing the total supply. This deflationary SOL mechanism incentivizes more token holders to participate, thereby increasing network security. see more Superteam Substack Blog, and won the award in Solana Superteam's award-winning research report submission activity. Follow Solana Superteam Blog to get the original information.
Parcl Parcl A blockchain-based real estate platform that allows you to enter the real estate market with no minimum investment, low transaction fees and instant Liquidity see more is a Web3 Web3 see more Real estate investment platform that allows anyone to invest in real estate assets with as little as $1. Through this platform, users are allowed to obtain investment opportunities in the real estate market of cities throughout the United States by investing in a REIT-like method.
This article attempts to discuss the market background and feasibility of the Parcl business model, and introduces the Parcl v2 product. This article comes from The Superteam Blog, compiled by Odaily Planet Daily.
market background
REITs
REITs (Real Estate Investment Trusts) have been around for a long time. Investopedia defines REITs as companies that own, operate, or finance income-generating real estate. Similar to mutual funds, REITs pool the capital of multiple investors, making it possible for individual investors to invest in real estate without buying, managing or financing any properties.
REITs can invest through public or private sources, and can invest through equity and/or mortgage loans. However, for retail investors, public equity REITs are the most common way to access real estate investment opportunities.
fragmented ownership
In addition to real estate, retail investors can also acquire real estate assets through partial real estate investment. This is when many different investors split the cost of the real estate among them. Fractional ownership gives them a share in the real estate and makes them part owners.
Some real estate investments come in different forms. Sometimes investors receive a deed and equity in the property; other times, people can buy a share in the property, which is then run by a management company. In some cases, a fractional ownership interest entitles the investor to stay on the property for part of the year for vacation. In other cases, investors can invest in real estate without actually living in it, and rent it out through platforms such as Airbnb for profit.
Chain investment
Expanding from the concept of REITs and fractional ownership, a number of web3 companies are attempting to provide access to real world assets (RWAs), especially real estate, by leveraging blockchain technology.
The following are the basic use cases of blockchain in real estate investing:
Propy Propy Propy is a decentralized real estate marketplace powered by a superior blockchain infrastructure to facilitate real-time unified transactions to reduce fraud and redundancies. Propy is the world's first international real estate marketplace. see more It is one of the first companies to try to use blockchain for real estate auctions. TechCrunch and Arrington XRP in 2021 XRP XRP is the native token of the XRP ledger, with the goal of replacing Bitcoin and establishing a trustless, instant and cheap cross-border payment network. Like Bitcoin, XRP relies on a public ledger called the XRP Ledger to store transaction details. A total of 100 billion XRP were pre-issued and launched in 2013. In addition to XRP , XRP can also be traded with other currencies in the Ripple ecosystem. XRP acts as a "bridge" between hard-to-match fiat currencies, so if, for example, there are no market makers on the network willing to trade dollars for pounds, people can sell the former for XRP and use it to buy the latter. XRP is also used to provide On-Demand Liquidity(ODL) for Ripple's flagship RippleNet service, a global payments network of financial institutions that was originally three separate products prior to 2019: xCurrent (real-time settlement solution), xRapid (Liquidity solution) and xVia (payment API). see more Capital co-founder Michael Arrington tokenized his apartment near Kiev, Ukraine into an NFT and sold it at auction for 36 ETH .
One example is Fraction, a company that allows retail investors to buy fractional ownership of a specific property at a certain price. The categories in which RWA is offered range from beachfront pool villas, penthouses, EV charging stations to luxury yachts, meaning it’s not limited to real estate. Currently, the company only operates in Thailand and does not allow US citizens to access its products.
Another example is HomebaseDAO, a real estate deed tokenization platform on Solana that allows individuals to purchase fractional deed ownership as an NFT by tokenizing a property on Solana and using a smart contract tied to the NFT. It has successfully tokenized the deeded title to a home in South Texas. The property was valued at $235,000, but Homebase managed to raise funds for the property at $246,800 (in USDC).
Above are some recent and relevant examples of Web3 real estate companies and their practices:
About Parcl
Parcl is a Web3 real estate investment platform that uses blockchain to solve the current bottlenecks in real estate investment and introduces the world's most popular real-world assets into the blockchain.
In May 2022, Parcl announced the closing of a $7.5 million funding round, with participants including Archetype Archetype see more , Dragonfly Capital, Shima Capital, Solana Ventures, Not Boring Capital and FJ Labs and other well-known institutions.
Parcl's model
Parcl is quite different from other models. Most importantly, Parcl allows users to invest in neighborhoods and cities, rather than specific buildings. Its index acts as a REIT-like index system, representing a city's residential real estate market.
The protocol developed by Parcl "allows users to invest in digital square feet of real estate in communities around the world. It does this by allowing the creation of synthetic "Parcls" that are tied to an average price per square foot/meter within a particular neighborhood In simple terms, each Parcl index represents the median price per square foot/meter in a specific geographic location and can be freely traded in the platform's Liquidity pool. Accuracy can be improved as Parcl collects more than 10 million data points per day to provide precise pricing.
In theory, this concept works well for retail investors looking for highly Liquidity assets and broad diversification, especially in real estate, or more broadly, RWA (Real World Assets). It removes the specific risks that come with owning real estate in a particular area, which can cause trouble during a market downturn like post-COVID. It also drastically reduces entry and exit times and allows users to proactively manage their portfolios.
Parcl is also suitable for investors seeking global opportunities. It focuses on entire neighborhoods in the world's top-performing cities, including New York, Miami, and Los Angeles, with international markets such as Paris, London, and Singapore to come. Retail investors can invest in multiple cities at the same time by predicting the long and short direction of the market trend.
Parcl protocol v2
Parcl Protocol v2 To understand how Parcl works, one must first understand the protocol that drives it. The following is a brief introduction to it.
Definition
Definition Parcl v2 is conceived as an automated market maker ("AMM") for perpetual synthetic assets, which combines the best features of traditional AMM and synthetic asset protocols to produce an efficient and simple synthetic asset AMM.
AMM utilize algorithmic "money bots" to allow individual traders to easily buy and sell crypto assets. Users do not trade directly with other people like traditional Order-book trading, but directly through the AMM exchange smart contract protocol that uses mathematical functions for price discovery.
A "synthetic asset", or tokenized Derivatives, is a record of the relationship between the underlying asset and the purchaser. In traditional finance, Derivatives represent stocks or bonds that traders do not actually own but want to buy or sell. Synthetic assets, or tokenized Derivatives, take this process a step further by adding a record of the Derivatives to the blockchain and actually creating cryptocurrency tokens for it. The Synthetic Asset Protocol generates smart contracts that govern this system of records and tokens.
key features
isolation pool
solvency
price execution
zero credit risk
Optional Liquidity offering
Skew Management
delayed settlement
Details of these features can be found in the Whitepaper and apply to operate the Parcl application we will introduce later.
Advantage
Some of the benefits of trading synthetic assets using Parcl v2 include solvency, zero credit risk, capital efficiency, and trade execution at oracle prices. Additionally, Parcl v2 ensures users' solvency and zero credit risk through its unique Liquidity token accounting model. The model takes into account pool ownership and position profit and loss accounting, and the settlement of all closed positions is paid in Liquidity tokens. This means that all traders become implicit Liquidity Provider(LPs) when opening a position, and become explicit LPs when closing a position. This mechanism forces solvency because traders cannot get paid dollar-for-dollar based on the dollar value of the collateral.
The Parcl v2 protocol also tries to minimize governance, mainly because there are fewer risk parameters compared to other competitors. Pool management can be configured to be permissionless, and Liquidity provisioning is always permissionless.
limitation
Currently, Parcl v2 only supports asset price feeds that do not support liquid trading markets. Future developments in slippage and other protocol features will allow the protocol to be used with any asset price feed.
In terms of governance, there are some areas that are not permissionless configuration. For example, if pool creation is not set to no permissions, only protocol administrators can create new pools.
Learn more about the platform
Parcl Dapp are built on the Parcl v2 protocol and are publicly accessible via here. I will try to introduce the functionality of the Parcl Dapp in this part.
Solana wallet
Solana wallet connection is not required when browsing Dapp , especially on the "explore" and "trade" pages. Connecting your Solana wallet to the Parcl Dapp is only required if you want to start investing.
Currently, Parcl Dapp supports Backpack, Phantom Phantom's Friendly Solana Wallet for DeFi and NFTs see more , Solflare and Ledger Ledger develops security solutions for cryptocurrencies and blockchain applications see more wallet.
explore
This is the default home page for the application.
At the time of writing, Parcl provides access to most of the top U.S. real estate markets, including New York, Boston, Philadelphia, San Francisco, Los Angeles, Washington, Chicago, Atlanta, Seattle, Denver, Las Vegas, Miami Beach, and Phoenix.
Users can sort the indices by biggest/lowest movers, new indices, and geography (East Coast, West Coast, Midwest). Click "View All" to view all indices, not just the first few.
Each index provides detailed statistics including open interest prices, total deposits, market sentiment (long vs short ratio) and prices. There is also a "trade" button which, when clicked, redirects to the trade page for that particular index.
trade
After clicking the "trade" button for any index, the user will be taken to the trading page for that index. For example, here's my view in Atlanta:
I set the time period to 1 year, so the chart shows the Atlanta Index's movement over the past year. Other options include 7 days, 1 month, 3 months, and 6 months. The floating trade widget on the right allows the user to place buy/long or short trades, which we'll cover in more detail later.
As we scroll down, we can view more data about the index:
The Parcl Dapp provides users with all data related to the index, including key trading statistics (just like when buying REIT shares on a stock exchange), as well as market sentiment. This market sentiment feature is very interesting as it allows users to read arguments from Bullish and Bearish directions.
Further below, there is a map of the Atlanta metro area showing all housing units along with basic facts and statistics about the city.
This heatmap shows a collection of properties that users can filter by type: single family, townhouse, condo or show all. The heatmap changes based on the filters applied.
Key stats include total population, median age, median household income, total area, and even maximum/minimum temperatures for the past 90 days (which might be important if you're concerned with the livability factor of your cities).
At the bottom, users can also view other related markets:
Geographical reasons have nothing to do with correlation, and under this related item are the categories with the highest increase in the index.
The "explore more" button will take us back to the explore page. Back to the floating page, when the user tries to make a transaction, the wallet needs to be connected:
There are other data to look at, such as leverage, transaction fee rates, exchange rates (USDC- USD+ USD+ USD+ is a yield-generating Stablecoin that generates 8-12% annualized yields through daily rebase. It is fully backed by a Liquidity, yield-generating, low-risk portfolio of DeFi assets (mainly lending protocols and stable-to-stable Liquidity pools) to allow (1) avoid losses and generate profits daily (2) instant on demand Mint and cash out USD+ against USDC. USD+ is used for (1) Liquidity management - temporary storage of idle Stablecoin cash (2) AMM trading and (3) leveraged yield farming. USD+ brings capital efficiency benefits to Stablecoin usage, i.e. idle Stablecoin and/or additional yield for major protocols USD+ is currently on Polygon and expanding to other chains. We will enter the market by establishing USD+ trading pairs on leading AMM : (1) Stablecoin boost pool on Balancer/Beethoven, (2) ETH -USD+, Matic -USD+ on Quickswap/ UNI V2, (3) Potentially, curve. The advantage of USD+ is that we are able to maintain the peg without deploying our own funds - since USD+ can be instantly minted/redeemed with USDC, we are able to use flashl to arbitrage our pool oans without our own capital, thereby maintaining the peg . see more +++++++) and estimated costs. Estimated investment value is calculated based on this data.
After submitting an order (in this case a buy long order), the user is prompted to accept the transaction in the wallet and pay some SOL as gas. Afterwards, a confirmation window will appear as follows:
You can use SolScan to view on-chain transfers, or simply close this window. The window will look like this:
Clicking "Open Position" will allow the user to place the trade again. On the other hand, clicking on a position under "My Positions" will expand a panel allowing the user to close that position:
Liquidity pool
After successfully linking the wallet and establishing a position, the user can navigate to the Liquidity Pools tab. Again I chose to use Atlanta as an example:
After reviewing the order, clicking submit, and approving the transaction in the Solana wallet, the user can see the confirmation component:
Liquidity from the pool:
The "+/-" buttons will allow users to toggle between depositing/withdrawing Liquidity from the pool.
portfolio
After opening a position and adding some LPs, let's go to the portfolio page:
On the left, users can view long-short trades and the total open interest of LPs. Clicking on the "Total LP Positions" block will return the user to the Liquidity pool page, while clicking on any index's long/short positions block will return the user to the trading page for that index.
On the right, users can view their purchasing power, which means the amount of USDC in their connected wallet, and their SOL balance (used for transaction gas fees).
Other tools
wallet management
In addition to portfolio pages, users can also access their balances by clicking on the wallet icon in the upper right corner of any page:
After clicking the "Wallet" button, the widget will drop down:
Here, you can view your buying power just like on the portfolio page. There are other functions, including transaction settings (only for advanced function users), copy wallet address, change wallet and disconnect wallet. Change/disconnect wallet should only be used when you need to replace the currently connected wallet with a new one or log out of this wallet.
USDC deposit
If you want to add USDC to your purchasing power, the Parcl Dapp allows you to purchase USDC within the Dapp , just click on the balance on the right side of the wallet icon. After clicking, a window will pop up:
This feature is powered by MoonPay MoonPay MoonPay is a financial technology company building payment infrastructure for cryptocurrencies. Its suite of access products offers access to all major payment methods, including debit and credit cards, local bank transfers, Apple Pay, Google Pay and Samsung Pay, supporting smooth conversions between fiat and cryptocurrencies. see more To provide support, MoonPay is a Web3 payment gateway that supports multiple currencies. Users need to verify their email and then enter their personal details. Such as name, date of birth, residential address and finally enter payment details (debit/credit card). Once done, they can easily purchase USDC without having to re-enter this information.
remind
Users can also sign up to receive notifications if they wish to receive updates on their personal social accounts. Clicking on the bell icon next to the wallet icon on the right will open a drop-down window. Users will need to approve this action in their wallet before accessing it.
Users can choose to receive notifications via email/mobile number/Telegram. Once done, the user can always go back and manage notification settings. (For Telegram, an additional authentication step is required.)
Chat (Beta)
This beta feature is basically an AI assistant powered by ChatGPT that allows users to query information about Parcl products, features, and general market insights. It currently supports multiple languages such as English, Chinese, Hindi, etc.
trading contest
Users can also visit the competition page to participate in trading activities on Parcl. People can compete with other Parcl users to win prizes, including cash (USDC) prizes, NFTs, badges, and more. People can also view contest prizes, time periods, rules, weekly stats and leaderboards. However, "Maximize Your Potential" is only available for advanced users. At the time of writing, Real Estate Royale Royale Royale is an industry-focused decentralized lending protocol. Its purpose is to create Web 3.0 smart-enabled funding solutions using DeFi primitives to support the innovation of iGaming products and platforms. We call the combination of iGaming returns iGDeFi, which has nothing to do with DeFi crypto assets, but is powered by the base layer DeFi protocol. see more Events for the third season are underway.
(Bonus) Advanced features
This set of features is only available to advanced users, that is, users must have sufficient knowledge of leveraged trading to opt-in.
Users can join the advanced feature plan on the Parcl Dapp through the wallet window shown above. After confirming to join, the user will be prompted to answer the following form:
After clicking "Enable Features", users can now access the transaction settings panel in the wallet window. Here, users can set their default leverage for trading. By default, close and burn is on, which means that short and long positions will be automatically liquidated when they fall to 75% and below.
After saving the changes and returning to the trading page of any index, the user can notice a new functionality when opening a position. This leverage can be adjusted manually.
<img src="https://piccdn.0daily.com/202306/29025225/pczn628ljw6r6ekt.png" data-img-size-val="630, 888 888 see more "/>
In addition, users can open multiple long or short positions at the same time, that is, open a long position in the city of Atlanta and open a short position in the city of San Francisco at the same time.
The meaning of Parcl
By reading the theoretical Whitepaper of Parcl v2 and the actual experience of using Parcl Dapp , I can see that Parcl has multiple meanings for Web2 and Web3.
Implications for Crypto/Web3 Users
Cryptocurrency users, especially traders, are likely to be very familiar with concepts such as leverage, long/short trading, Liquidity pools, etc., so it is easy for them to understand and use Parcl's advanced features. With both basic and advanced features, traders can explore an entire new asset class with extremely low initial capital (as little as 1 USDC plus pennies for SOL gas fees). They have index access to all of these real estate markets and their yields, as well as entire cities to minimize risk at a single site.
Other advanced features, such as leverage, pair trading, and basic functions, such as Liquidity pools, lending and research data, also allow traders to better prepare and hedge market downside risks, thereby developing better in the changing market environment investment strategy to maximize return on investment.
Implications for the general public (i.e. Web2 users)
For the average retail user, Parcl offers a new option for real estate investing and, more broadly, an opportunity for investing in real-world assets. With access to transparent data sets, risk hedging and increased Liquidity through dynamic Liquidity pools, retail users can easily access real-world asset indices and Liquidity pools on-chain at very low initial cost and use seamlessly available User Interface.
Implications for Web2⇒Web3 Beginners
It can be assumed that after using Parcl, these retail investors can learn about Web3 products and the ease of how blockchain technology can be applied to traditional investment practices, allowing them to further understand other Web3 real-world assets and products. For other Dapp built on top of the Parcl Protocol, this will open up a huge window of opportunity beyond RWAs that simply involve other real-world assets.
