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Last year, we brought intel on Parcl to your inbox, informing readers on real estate perps trading made possible by the protocol. The platform has since exploded in popularity, with TVL surging from sub $1M to nearly $60M as of today. This has coincided with the resurgence of Solana DeFi, as well as DePIN on the chain. Solana NFTs, including Parcl’s own HOA NFT have seen massive volume and inflows. But Parcl’s success is definitely dependent on its host network; it provides a very real and unique use case that can’t be found anywhere else in crypto.
The team at Parcl has spent nearly 3 years building out infrastructure for real estate trading, including their one-of-a-kind real estate pricing indexer, Parcl Labs. This aspect of the protocol should not be overlooked, as it is a rare example of something developed adjacent to crypto that has outside implications and utilizations for those outside of the crypto industry, in this case, real estate speculators. Of course, most of Parcl’s recent recognition is related to its actual platform and its points program; we’ll go into detail on both of these aspects below.
Two new markets have launched since the last time we covered Parcl, Chicago and Los Angeles. There are 15 American markets that will soon have trading enabled including Tampa, Seattle, Denver, and more.
Parcl currently only serves the U.S.; its offerings are also soon expanding into the international market. In the U.S., each state has its own intricacies that may affect residential real estate prices. This is even more so the case when it comes to whole other countries. Jakarta and Hong Kong markets are also slated to launch soon, as well as Vancouver and Toronto in Canada. The team plans to eventually include most if not all of the top 200 cities worldwide by population. London, Paris, and the greater Ille-de-France region all already have their own markets on the platform, though they are not yet available for trading.
ParclLabs & The Real Estate Data Problem
The last time we covered Parcl, we explained that the platform uses its own data indexer (ParclLabs). According to Kellan Grenier, Co-Founder of Parcl, the residential real estate data industry is very outdated despite some progress around listing aggregators. The team behind Parcl soon realized that better data infrastructure was required to create pair trading for real estate in DeFi.
Parcl initially focused on team building, infrastructure development, research, and data collection. The perps aspect that most know the platform for actually came later when it was realized that blockchain tech and DeFi would be a good battleground for long/short pair trading of real estate, something non-existent in TradFi markets. Execution speed, cost, self-custody, and user burden are inherent advantages of blockchain compared to traditional finance.
On the data side, Parcl takes into account the significant uptick in volatility in real estate markets; there are 10 times more price changes in the New York Metro Area today than in the past. Parcl’s price index changes on a daily basis, taking into account aggregate listing prices and the number of listings. This all runs on a custom Pyth Oracle. In the future, other contributors might be used in conjunction with Parcl Labs’ data.
Parcl Labs has commercial relationships outside of crypto, and there is an opportunity for the data they index to be used as it’s own independent product.
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Parcl’s Points Program
The last time we discussed Parcl, a points program was slated to launch within 45 days. This program has since launched, and has been live for almost a month. Its impact on TVL is apparent, although TVL was ramping up long before this initiative.
Check out the Parcl perps product or LP with $USDC - your choice, be rewarded either way…
Use code ‘REVELO’ to earn a permanent 5% bonus on your points earned…
Parcl’s success can also be observed in the price of its HOA NFTs. The collection’s floor price and volume have dramatically increased as of late, currently sitting at a floor price of 15.69 $SOL (~$1,650). This is currently the only direct way to speculate on the success of the platform, as its token has not yet launched, although users may be able to earn an increased revenue share of the protocol (more on this later).
Parcl has taken care of its users; on January 24, they applied a 15% points bonus to platform users and LPs who held an HOA NFT. This bonus aside, the platform rewards NFT holders more now than they did in the past as the points program has finished season 1 and entered season 2. For non-NFT holders, a 5% bonus for future points accumulation was applied. Season 2 continues to reward NFT holders with a 20% boost in holding one HOA NFT, and an additional 5% boost for each other NFT held in accordance.
Season two has increased the slice of trading fees given to LPs from 70% to 80%. This is on top of trading fee rates, which have also been increased from 1/6 to 2/10 bps for makers/takers, respectively. Many users anecdotally reported being able to scale the points leaderboard with just sub ~$1k LP balances.
There is an ongoing trading contest in the month of February, with AssetDash, a crypto rewards tracker and incentives provider. The prize pool of this program expands as more users join, and will reward 203 participants, making odds of qualifying higher than many other trading competitions. Prizes consist of ~$12k+ in addition to multiple NFTs.
Across the board, points accrual rates for LPing $USDC and trading have both been increased, from 3 pts/day & 1 pt/day, to 4 pts/day & 2 pts/day, respectively. This skews the balance more in favor of rewarding active traders rather than passive LPs, Of course, being a perps platform, leverage needs to be taken into account as this could allow a user with the same amount of capital to generate more points by taking leveraged trades than LPing, especially with the increase. USD in Open Interest (OI) is the metric that counts for traders, which is notable as up to 10x leverage can be applied. Of all the onchain perps project options available to acquire points, real estate perps via Parcl is arguably one of, if not the least volatile opportunities around, as compared to traditional points farming methods on perps platforms like Hyperliquid or IntentX.
It is ultimately unknown what other changes will come to the platform going forward, but it would be reasonable to think they may include more retroactive rewards or multiplier bonuses. There will be 3 seasons in total for Parcl’s points program with concluding rewards and additional plans for NFT holders being teased.
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