NAV and Minting
How $USH tracks home prices through controlled supply expansion
HEI vs. HPA Growth
Manifest operates two parallel daily calculations that enable $USH to deliver pure real estate exposure while generating sustainable yield:
HEI Portfolio Value: Growing at ~15% annually (see Portfolio Valuation)
Home Price Appreciation: Growing at ~3–5% annually
The gap between these growth rates provides returns for the entire protocol.
Tracking Home Price Appreciation
Daily HPA Calculation
Each day, Manifest:
Updates estimated values for all properties using automated valuation models (AVMs)
Calculates weighted average appreciation across the portfolio
Adjusts $USH NAV by this appreciation
Since the portfolio contains many HEIs on properties across diverse markets, it serves as a representative index of U.S. residential real estate.
$USH NAV as a U.S. Real Estate Index
$USH's NAV is a real-time measure of the backing value of $USH. The NAV price is indicative of exposure to a diversified portfolio of American residential real estate with:
No leverage effects
No HEI multiplier benefits
See Portfolio Valuation for more details on the AVM and home value estimation approach.
The Minting Mechanism
How Value Flows Through the Protocol
The protocol’s backing portfolio is structured to generate daily value. The HEI portfolio provides approximately 15% pre-tax returns, while the $USH tracks the home price appreciation of the backing portfolio (around 3-5%). The difference in yield is captured by Manifest through the additional minting of USH tokens.
Daily Value Capture Example
Day 0:
Portfolio Value: $100,000,000
$USH Supply: 10,000,000 tokens
NAV per Token: $10.00
Day 1:
Portfolio grows to: $100,041,000 (HEI returns)
Target NAV: $10.0011 (tracking HPA)
Minting calculation:
Required total tokens: $100,041,000 ÷ $10.0011 = 10,002,999
Mint: 2,999 new tokens
Result:
Existing tokens: Now worth $10.0011 each (~$10k captured in pure HPA) ✓
New tokens: ~$30k captured in excess value ✓Value Distribution
The newly minted tokens flow to:
Protocol operations (~2% annually)
Governance initiatives (if activated)
$sUSH stakers (remainder)
This elegant design ensures $USH holders get exactly what they want — real estate exposure — while the protocol sustainably captures the spread.
Settlement Reconciliation
The daily minting process involves using modeled returns from the HEI portfolio. Upon settlement, actual returns are compared to pre-distributed amounts. Excess returns are deposited into the Reserve Pool. Similarly, in the rare event of shortfalls, these too are covered by the Reserve Pool.
Conservative portfolio valuation typically results in positive reconciliation. If realized settlements undershoot modeled accruals, the Reserve absorbs the delta before any impact to $USH tracking behavior.
Why This Architecture Works
This system achieves multiple goals:
Transparency: $USH tracks observable home prices
Sustainability: Real yields from real assets
Efficiency: No fee extraction from $USH holders
Flexibility: Different products for different needs
The controlled supply expansion ensures $USH delivers exactly what investors expect — liquid exposure to U.S. residential real estate — while creating value for active protocol participants.
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