Reserve Pool
First-loss capital and settlement reconciliation mechanism
What It Is
The Reserve Pool is Manifest's settlement reconciliation mechanism, controlled by $USA holders. It captures value when HEIs outperform modeled expectations and absorbs losses when they underperform.
How Settlement Reconciliation Works
Manifest delivers daily value capture by minting $USH based on estimated HEI returns. When HEIs actually settle:
Actual returns > Estimated: Additional $USH minted to Reserve Pool
Actual returns < Estimated: $USH burned from Reserve Pool
Due to conservative valuation, HEIs often outperform at settlement, sending value to the Reserve Pool.
Additional Inflows
During the 28-day $sUSH unstaking cooldown, positions do not earn emissions. Instead, these emissions are redirected to the Reserve Pool.
Capital Structure Position
The Reserve Pool sits as the junior tranche:
$USH: Tracks HPA (home price appreciation) regardless of individual HEI over/under‑performance
$sUSH: Receives daily value capture distribution (excess over HPA)
Reserve Pool: Absorbs reconciliation variance + abandoned rewards; first-loss / buffer layer
Access
$USA tokens control the Reserve Pool, with withdrawals blocked until final protocol accounting. This ensures the pool can fulfill its role as the reconciliation mechanism throughout the protocol's operation.
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