Hello Parcl community! We are updating Parcl V3 smart contract to reset funding rates to 0% for all real estate markets. This change helps you hold deals longer with less volatility in funding rates. Here’s why we’re doing it and what it means for you.
The Problem with Funding Now
On Parcl, you buy or sell deals in real estate markets—like New York or Miami—without owning property. You skip taxes and repairs. But funding costs have been high and volatile. Funding is the money paid daily between buyers and sellers, based on demand for a deal. Examples:
- In Denver, a $10,000 deal has $28 daily cash flow—$5,040 in six months.
- In New York, it’s $149 daily—$26,820 in six months.
High costs make long holds difficult. You lose money to funding instead of earning from price increases. Our old parameters let funding rates rise fast—up to 36% daily. This worked for quick trades but not for longer plans.
Our Solution: A Fresh Start
We’re updating the smart contract for real estate markets only. (Crypto markets like SOL or BTC stay the same.) Here’s what changes:
- Funding Rate to 0%: The funding rate is being reset to 0%. Funding per unit—the total money paid—doesn’t reset but changes from this point at a slower pace.
- Slower Growth: Max funding velocity drops to 0.01% daily (from 36%). Funding now moves very slowly.
- More Stability: Skew scale rises to 50x Max Side Size. It takes a big demand shift to raise funding velocity much more.
This means funding per unit moves slower, making long holds easier.
Why We Are Changing
We want you to earn from real estate price changes without high funding costs. Now, a $10,000 deal in Atlanta has $14 daily cash flow—$2,520 in six months. After the update, the funding rate starts at 0%. If demand shifts, cash flow might reach $0.05 daily after a month—$9 in six months. If Atlanta’s price goes from $284 to $310 per square foot, you keep the profit, not lose to funding costs. Holding for three or six months is now possible.
An Example for You
Picture a $10,000 deal in San Francisco at $946 per square foot. Now, cash flow is $37 daily—$6,660 in six months. After the update:
- Day 1: Funding rate is 0%, cash flow starts low.
- After one month: Maybe $0.20 daily if demand grows—$36 total in six months.
- After six months: If the price hits $980 per square foot, you sell and earn more.
You can hold longer with less funding impact.
We Listen to You
You told us that high funding is an issue. We agree. Parcl should let you invest in real estate your way—short or long term. This update makes that happen.
Have questions? Contact us. We’re here to help you succeed.
Thank you,
The Parcl Team
