---
description: >-
  Why previous attempts at tokenized real estate failed -- and how Manifest is
  different
---

# Why Manifest is Different

## The Current Landscape

Today's options for real estate exposure in crypto fall into three categories, each with fundamental flaws:

### 1. Fractionalized Property Tokens

Projects like RealT and Lofty tokenize individual properties, making investors fractional landlords. While innovative, they inherit all the problems of direct ownership:

* **Concentrated Risk**: Single property exposure with no diversification
* **Management Overhead**: Dealing with tenants, maintenance, and property managers
* **Tax Complexity**: K-1 forms, state-specific filings, and occasionally not available to non-U.S. investors
* **Illiquidity**: Tiny secondary markets with massive bid-ask spreads
* **High Fees**: 10-15% annual management fees eating into returns

### 2. Traditional REITs On-Chain

Some protocols simply wrap existing REITs into tokens. This approach fails because:

* **Not Permissionless:** Cannot use the power of DeFi
* **Taxation**: REIT dividends are taxed to the individual
* **Market Correlation**: REITs price action is more akin to stocks due to being an underlying rental business with operations that can fail vs. real estate exposure like HEIs
* **Limited Access**: Still subject to geographic restrictions
* **No DeFi Integration**: Can't be used as collateral or in liquidity pools

### 3. Synthetic Real Estate Tokens

Purely synthetic tokens that track real estate indices through derivatives:

* **No Real Backing**: Just promises and algorithms
* **Counterparty Risk**: Dependent on oracle accuracy and protocol solvency
* **Basis Risk**: Tracking errors compound over time
* **Limited Scalability**: Require continuous market making activity and limited options to hedge exposure

## How Manifest is Different

[$USH](../tokens/what-is-usdush) represents a fundamentally new approach:

### Real Assets, Not Synthetics

Every $USH token is backed by a portfolio of actual [Home Equity Investments (HEIs)](../home-equity-investments-heis/hei-mechanics) -- real mortgage contracts on real properties.

### Portfolio, Not Properties

Instead of fractionalizing individual homes, Manifest aggregates many HEIs across the U.S. This creates:

* **True Diversification**: Exposure to the entire market, not single properties
* **Consistent NAV**: Daily pricing based on broad market movements
* **No Management Overhead**: HEIs eliminate property management complexity

### DeFi Native Design

Built on ERC-20 standard with full composability:

* **Collateral Ready**: Use in lending protocols
* **LP Compatible**: Provide liquidity on DEXs
* **Yield Bearing**: Stake for additional returns through [$sUSH](../tokens/sush)

### Global and Permissionless

True to crypto's ethos:

* **No Geographic Limits**: Available worldwide
* **No Minimums**: Buy $1 or $1 million
* **No Accreditation**: Open to everyone
* **No Lockups**: Tradable 24/7

{% hint style="success" %}
Previous attempts tried to force traditional real estate into crypto rails. _Manifest rebuilt real estate exposure from first principles for the blockchain era._
{% endhint %}

## The Result

By using HEIs instead of direct property ownership, Manifest achieves what others couldn't:

* Genuine [liquidity management](../protocol-mechanics/liquidity-management) that enables instant trading
* Sustainable daily value capture (see [NAV and minting](../protocol-mechanics/nav-and-minting)) without extractive fees
* Professional [portfolio construction](../home-equity-investments-heis/portfolio-construction) across diverse markets
* Clean [capital flows](../protocol-mechanics/capital-flows) optimized for global investors

## Next Steps

* Understand the [size of the opportunity](../analysis-and-risk/size-of-the-opportunity) Manifest addresses
* Learn [how to buy $USH](../user-guides/how-to-buy-usdush) and get started
* Explore the [protocol mechanics](../protocol-mechanics/how-manifest-works) in detail
