Capital Flows

Follow the money through the Manifest ecosystem

Entry: From $USDC to $USH

When you swap $USDC for $USH, your capital follows this path:

  1. Swap Execution: Trade happens instantly on-chain via Uniswap v4 or secondary DEXs

  2. Aggregation: Protocol collects $USDC from multiple buyers

  3. Conversion: $USDC converts to USD through our offramp partners

  4. Deployment: USD flows to HEI originators

  5. Investment: Capital purchases new HEIs across America

This process typically completes within 1-3 business days, though your $USH is fully backed by the existing portfolio, including newly committed $USDC) from Day 1.

Portfolio Activity

Once deployed, capital works continuously:

  • New HEIs: Fresh capital adds geographic and temporal diversification

  • Settlements: When homeowners sell/refinance, HEIs pay out

  • Reinvestment: Settlement proceeds typically buy new HEIs

  • Reconciliation: Settlement variations flow to/from Reserve Pool

  • Optimization: Opportunistic sales to securitization markets can accelerate returns

The portfolio maintains full deployment while preserving flexibility for liquidity needs.

Value Distribution

The daily minting mechanism directs value flows:

  1. Portfolio generates ~15% returns through HEI mechanics

  2. $USH NAV grows ~3–5% tracking home prices

  3. Excess ~10-12% minted as new $USH tokens

  4. Distribution hierarchy:

This elegant design funds the protocol without charging fees to $USH holders.

Settlement Flows

When HEIs settle, actual returns differ from estimates used in daily minting:

  • Typical outcome: Outperformance due to conservative valuations → excess value minted to Reserve Pool

  • Rare outcome: Underperformance → $USH burned from Reserve Pool

The Reserve Pool acts as reconciliation buffer, capturing these variations while ensuring smooth protocol operations.

Exit Paths

Manifest provides comprehensive redemption options including instant DEX sales, NAV swaps, planned unstaking, and emergency backstops.

Tax Optimization

The capital structure maximizes after-tax returns:

For the Protocol:

  • HEI reinvestment capitalizes on 1031 treatment to defer capital gains taxes

  • Deferred gains compound returns quicker

For Token Holders:

  • Capital gains on token sales - taxed under your home country tax laws (potentially zero if your country does not tax foreign assets)

  • No K-1 forms or partnership complexity as is common with US investments

  • No U.S. tax reporting obligations for tokenholders because they own $USH

Result: Manifest transforms a tax-inefficient asset (direct real estate) into tax-optimized tokens.

The Cycle

Capital flows through Manifest in a continuous cycle: Users swap $USDC for $USH, the protocol deploys that capital into HEIs, the portfolio generates returns, excess value gets minted as new tokens, rewards flow to stakers, settlement variations reconcile through the Reserve Pool, and users can exit at any time. When HEIs settle, the capital immediately is recycled into new investments, maintaining full deployment while investors maintain liquidity in secondary markets.

The protocol transforms lumpy, illiquid real estate transactions into smooth, continuous flows of capital and yield – delivering the benefits of real estate investment without its traditional friction.

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