Protocol Mechanics

How does profit distribution work in the Manifest ecosystem?

As the $USH Collateral Pool accumulates value, profits are reinvested in additional HEIs to grow the backing value per token and defer capital gains taxes. Distributions are ultimately made to $USH tokenholders when the $USH tokenholders vote to redeem their tokens.

What mechanisms ensure protocol stability?

Protocol stability is ensured through multiple mechanisms: diversification of underlying assets, HEIs structured with downside protection, reserve buffers, transparent onchain monitoring, and contingency procedures for extreme market scenarios. Further, $USH tokenholders have the option to vote and demand a redemption of all $USH.

How does the protocol handle redemptions if necessary?

The protocol was designed to liquidate all its assets in the event of a full redemption. A full redemption can be initiated either through a governance vote by $USH tokenholders, or independently by Manifest. If the full redemption occurs, all HEI assets will be sold. Cash from this transaction will be used to repurchase all outstanding $USH tokens.