$USH vs. Stablecoins

Is $USH a stablecoin?

No, $USH is not a stablecoin. Unlike stablecoins which aim to maintain a constant value, $USH is designed to appreciate in value as the underlying real estate assets appreciate. $USH is comparable to stablecoins only in terms of efficiency and liquidity, but its fundamental purpose is to provide investment returns through capital appreciation.

Advantages of $USH Tokens Over Stablecoins

Appreciation Potential

While stablecoins are designed specifically to not appreciate in value, $USH tokens offer exposure to potential appreciation in the residential real estate market through their underlying home equity investments. This provides an opportunity for capital growth that stablecoins purposely avoid.

Real Asset Backing

$USH tokens are collateralized by beneficial interests in home equity investments, representing ownership in tangible real assets. This differs from many stablecoins which may rely on fiat reserves, other cryptocurrencies, or algorithmic mechanisms to maintain their value. Further real assets hold their value better during both market downturns and periods of high inflation.

Regulatory Clarity

$USH tokens operate within a clear regulatory framework. This contrasts with the evolving and sometimes uncertain regulatory environment surrounding stablecoins.

Institutional Structure and Governance

Manifest uses a bankruptcy remote structure composed of a Cayman foundation company, a BVI business company and a Delaware C-corp to isolate the HEI assets and tokens from the Labs co. Manifest uses a custodian to hold the HEIs assets and has corporate governance provided by a professional director.