Current Parcl Protocol user? Click here to learn the steps you need to take during the transition to v2.
Parcl’s mission is to deliver real estate to everyone through enabling exposure to the price performance of real estate markets with no minimums, high liquidity, and low transaction fees.
The current version of Parcl - Parcl v1 - achieved this goal and more by providing thousands of investors the ability to gain exposure to changes in real estate prices across some of the most recognizable cities and neighborhoods in North America.
With the Parcl v1 protocol, there were many lessons learned about improvements that will take the user experience to the next level. Traders want capital efficiency, alongside both stability and solvency, to express their views on where they think real estate prices are going in their favorite cities and neighborhoods around the world.
Parcl is thrilled to announce that a v2 Protocol is deep in development. Parcl v2 will offer major upgrades in how investors use Parcl moving forward. Parcl’s commitment to delivering on its mission has never been stronger, and Parcl is confident that the Parcl v2 Protocol is a major step in that direction.
In order to deliver the best possible Parcl v2 Protocol, it starts with transitioning users off of Parcl v1. The goal of this article is to ensure the smoothest possible transition to the v2 Protocol once it is launched.
Why is Parcl upgrading to a v2 Protocol?
Parcl v1 does many things well; however, it has a handful of structural and product-oriented challenges that must be addressed.
The v1 architecture largely borrows from the blue chip stablecoin architectures, with its over-collateralized debt vaults against which borrowers mint real estate price feed tokens. Since the tokens trade freely on any on-chain trading venue, the on-chain price requires a healthy arbitrage ecosystem to maintain parity with the price feeds.
Parcl v1 does not deliver an optimal arbitrage trade for Parcl tokens in the same way some stablecoins do with peg stability smart contracts that offer a venue for arbitrage traders to bring on-chain prices back to peg – or in Parcl’s case, back to the Parcl Price Feed (”Oracle Price”). Therefore, without the right conditions for arbitrage, traders may buy and sell Parcl real estate tokens at prices above or below the true Oracle Price.
How does sunsetting Parcl v1 impact existing users and Liquidity Providers?
Part transitioning away from v1 means the Parcl website – which supports the v1 Protocol – will undergo a series of phased deprecations through the end of 2022. In Phase One, Investors and Liquidity Providers (LPs) will no longer have the ability to mint or open vaults beginning September 30, 2022 September 30th.
However, investors and LPs will be able to burn tokens and close vaults while the dApp supporting v1 is being fully deprecated. Parcl will share more specific information and dates as Q4 progresses.
In an upcoming blog post, Parcl will be sharing more information on exactly what to expect and walkthrough guides for how to unwind positions on Parcl.
🚨 Parcl v2 will launch in Q4 2022 – users are strongly encouraged to close all trading and vault positions BEFORE the launch of Parcl v2.
The future of Parcl: v2
While we begin to phase out Parcl v1 over the course of Q4 2022, Parcl will also begin rolling out Parcl v2, with more information being shared as this progress takes place. v2 is a synthetic asset protocol that is a hybrid of perpetual futures with AMM prediction markets.
This new protocol will allow users to invest in the real estate markets in a more capital-efficient manner, including leverage, with confidence that positions will always be opened and closed against the current Parcl Price Feed price for any given market. This is in addition to new markets and new functionality such as research tools, portfolio view, and many other user-facing enhancements.
Parcl is super excited to get community feedback as we make additional announcements and begin rolling out this new v2 functionality.
Be on the lookout for more information about the v2 protocol in the coming weeks on Discord and Twitter.
Click here to learn more about what current Parcl users need to do as the result of the transition from v1 to v2.