eBTC is a collaboration between wrapped.com and Moss Earth. Moss Earth has created the MCO2 token which represents one Amazon forest conservation project carbon credit. Wrapped.com powers is a cross-chain institutional bridge that enables Wrapped Bitcoin on several blockchains. The wrapped combination of the two enables a carbon-neutral Bitcoin allowing for the usage of Bitcoin in trading or defi applications while offsetting the associated carbon emissions.
It currently takes less than ten MCO2 carbon credits to offset the carbon emissions of Bitcoin in a single year. When a single eBTC token is created, a ratio of MCO2 has to be wrapped alongside the Bitcoin. The smart contract currently takes in this ratio from the user's wallet, holds it in the contract and emits the corresponding eBTC token back to the user. In order to redeem the underlying Bitcoin, the process can be done in reverse with the eBTC being presented to the contract, however the MCO2 token will be retired and not retreivable.