Solana DeFi: How to Long or Short Real Estate Markets with Parcl

Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned or any future Parcl token.

On February 2023, Parcl introduced a new Solana-based DeFi protocol for democratizing access to real estate markets. Parcl brings DeFi the long awaited access to real estate market returns on-chain. Anyone with a Solana wallet can invest as little as 1 USDC into perpetuals markets which represent long or short positions in high demand residential real estate markets, such as New York, Miami Beach, Boston, Chicago, San Francisco, and Los Angeles. 

Parcl indexes are real-world asset indexes that represent the median price per square foot in a given real estate market (or geographical location). 

For DeFi pros, you'll recognize Parcl is a decentralized perpetuals AMM designed for real estate synthetics. Trading is made possible by AMM pools that isolate risk. Liquidity providers (LPs) in Parcl provide USDC to isolated market pools, and similar to LPs in perps markets like gTrade by Gains Network, they get exposure to net trader profit and loss, trading fees, and skew impact fees. Trading fees are reinvested into the pool and auto-compound. LPs realize gains and losses by redeeming part or all of their liquidity tokens for USDC. LPs can lose a pro-rata share of their USDC deposits when funds are used to pay out positive trader PnL vs when they take on the reward for traders having a neutral or negative PnL.

Parcl markets each use price feeds created by Parcl Labs,