bETH tokens are bAssets built for Ethereum 2.0 staking, with their token value backed by Ethereum 2.0 staking positions. bETH tokens exist on both on the Ethereum chain and the Terra chain, each complying to the ERC20 standard and the CW20 standard. The bETH exchange rate determines the conversion rate when swapping stETH to bETH and vice versa. The exchange rate is calculated as the amount of stETH provided per bETH minted, the value initially starts with 1, and decreases with slashing events.

bETH is minted by submitting ETH or stETH to Ethereum-side bETH contracts, along with the Terra address to receive the resulting bETH tokens. Once submitted, bETH tokens (with the amount determined by the bETH exchange rate) are minted to the provided Terra address. bETH holders can redeem their tokens for their underlying stETH. Redemption is a two-step process:

• Transferring bETH to Ethereum
• Redeeming bETH to stETH.

bETH tokens can only be redeemed through Ethereum-side bETH contracts. bETH tokens that reside on Terra must first be transferred over to Ethereum via Terra Shuttle.