Redemption Options
How value returns to token holders
Overview
Manifest's liquidity framework ensures $USH holders can always exit their positions through multiple pathways. The protocol combines deep onchain liquidity for normal operations with offchain redemption mechanisms as emergency backstops.
Onchain Liquidity (Primary Exit)
Three Pillars of Liquidity
Deep onchain liquidity: Immediate liquidity at ~NAV
20% Protocol-Owned Liquidity (POL)
20% targeted Investor-Owned Liquidity (IOL)
Total: ~40% of TVL available for trading
Limited "floating" $USH: Reduces potential selling pressure
~50% locked in $sUSH staking
~20% in LP positions (incentivized with rewards)
Only ~30% freely tradeable (100% - 50% - 20%)
Automatic yield enhancement: As liquidity is consumed, $sUSH yields increase automatically because of cash-drag reduction, attracting new capital
Orderly Markets
Manifest's design ensures floating $USH roughly equals available liquidity, meaning even mass withdrawals can be handled orderly.
Trading Options
Primary Market: Whitelisted users can swap at ~NAV through Manifest's Uniswap v4 pool
Secondary Markets: Trade on any DEX at market prices
Offchain Redemption Mechanisms (Backstop)
Direct Redemption Queue
For normal redemptions when onchain liquidity is limited:
Request redemption at NAV value
First-come, first-served queue
Funded as HEIs mature (sales/refinances)
Receive $USDC at NAV value
Large Holder Distributions ($5M+)
Institutional holders can request (via best efforts):
In-kind transfer: Direct distribution of HEI assets
Best-efforts liquidation: Protocol sells proportional share of backing HEI portfolio
Governance-Triggered Liquidation
The ultimate backstop:
60% of $USH holders vote for redemption
Protocol must liquidate all HEI assets
Proceeds distributed proportionally
Ensures tokens cannot trade at deep persistent discounts
Institutional Buyer Relationships
Manifest maintains relationships with the traditional institutional buyers of HEIs in the event the Manifest portfolio needs to be liquidated.
Staking Considerations
$sUSH Exit Options
Sell directly: Trade $sUSH on secondary markets (avoids unstaking cooldown)
Unstake: 28-day cooldown to convert back to $USH
Use as collateral: Borrow against $sUSH instead of selling
Tax Considerations
Because $USH and $sUSH are issued by a BVI entity, there are no U.S. tax reporting obligations.
Why This Works
The combination of deep onchain liquidity and offchain backstops creates robust exit options:
Normal conditions: ~40% target liquidity handles all trading needs
Stressed conditions: Redemption queue processes exits orderly
Emergency conditions: Governance vote for redemption supports NAV recovery
This multi-layered approach protects token holders while maintaining the benefits of instant liquidity that makes $USH superior to traditional real estate.
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