Redeem

beUSD tokens can be redeemed at any time for any eligible asset or basket of collateral assets in the reserve. Users should have a way to exit at any time, and so this feature is available in any conditions. beUSD tokens are redeemable on a 1:1 basis for USD if the collateral ratio is healthy.

beUSD tokens offer flexible redemption options:

1. Instant Direct Redemption: Users can instantly withdraw the basket of yield-bearing tokens that represent the deposits in various yield-generating strategies, such as aUSDC, sUSDS, or sUSDe. Alternatively, users can withdraw the underlying stablecoins (e.g., USDC, USDe, USDS) after the unbonding period required by some strategies.

2. Intent-Based Execution: Users can redeem beUSD tokens for any underlying stablecoin. Bento uses an intent-based mechanism where solvers calculate the optimal route for converting the basket of yield-bearing tokens or collateral assets into a single asset that the user wishes to withdraw. Solvers can also provide external liquidity to fulfill user withdrawal requests by purchasing user shares and later redeeming them for profit.

3. Secondary Market: Users have the option to sell beUSD tokens on secondary markets for any desired asset. Since beUSD tokens are fully redeemable in the primary market, their 1:1 peg with underlying assets is maintained, supported by arbitrage opportunities.

The ability to mint and redeem beUSD tokens instantaneously ensures that the token's market price remains closely aligned with the value of the underlying basket of assets. Any price deviation from the basket’s value is quickly corrected by arbitrageurs, who capitalise on price differences in the secondary market to restore the token's peg.