Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
Another major Solana DeFi protocol has announced its own “points program” this past week, meaning we likely have months until an imminent token launch.
Parcl is a decentralized perps exchange for speculating on rising and falling real estate markets, one we covered in Wealth Mastery back in June 2023. With Parcl, traders can bet on major city property prices going up or down, including NYC to Miami Beach to Boston to Paris and beyond! Instead of being 3X long SOL, traders can be 3X long Brooklyn or 3X short San Francisco.
Parcl unlocks a multitude of use cases where traders can gain exposure to real estate market prices without owning the underlying–real estate.
The key to Parcl is their price indexes created from millions of real estate data points from cities across the globe. Parcl Labs refines and recalibrates this data to ensure each index mirrors real-time, city-specific real estate values down to the median price per square foot.
Last Friday, Parcl announced its Parcl Points program went live and that they would begin rewarding activities such as trading, LPs, and referrals.
Parcl users who were active on Parcl V2 and V3 were retroactively rewarded for past trading and LP’ing activities through 21:00 UTC on December 15th, which is now reflected in the Points Page here for Parcl.
In Parcl V3, there is a single unified pool of USDC deposits that acts as counter-party to traders if/when markets are not balanced 50/50 between longs/shorts. In theory, if all markets on Parcl are balanced (market skew = 50/50), then LPs can simply collect trading fees and have zero price exposure.
Due to this protocol design and the relatively stable balance of longs/shorts in Parcl markets, the opportunity to provide liquidity is very appealing for those earning Parcl Points. LPs earn 3 points per dollar per day deposited into the pool. For example, an LP who deposits $100 USDC earns 300 points per day.
For more daring Parcl users, anyone can open a long/short position on Parcl and be rewarded Parcl Points based on the initial dollar amount at opening, at a rate of 1 pointt per dollar per day. However, with leverage, it’s worth noting how much more points users might earn trading. For example, a user who goes 5X long for a notional amount of $500, earns 500 points per day.
The third way to earn Parcl Points is the Parcl Referral Program. When you refer someone to Parcl, you receive 10% of the Points they earn, while they receive a 5% boost on their Points forever. For example, you can enjoy a 5% boost on your Parcl Points by using the code defidad here.
How to Get Started Earning Parcl Points
Before we get started, please be aware of these risks.
- Smart contract risk in Parcl
- Front-end spoof attack on the app frontend
- Liquidation if holding a leveraged position
- An economic design exploit in the design of Parcl V3
- Pegged tokens like USDC can depeg
- Colluding signers on any multisig
Here’s how I get started!
- First, I can get started by going here and connecting my Solana wallet to create a Parcl account. It costs 0 SOL but it will require a small amount of SOL for gas costs.
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
