💽Protocol Architecture
Last updated
Last updated
1. Staking BTC on BTC Layer 2 (BTC L2): Users begin by staking their native BTC on a BTC L2 network (e.g., Babylon staking protocol). In exchange for staking, they receive uBTC as a wrapped version of BTC. This allows them to maintain the security of the BTC network while simultaneously earning rewards in the form of BTC L2 points.
2. Bridging BTC to Echo: Once users have uBTC, they can bridge this wrapped BTC into the Echo Protocol. Upon successful bridging, they receive aBTC, which is the version of BTC represented on the Aptos network. At this stage, their aBTC is automatically staked within the Echo system, earning them Echo points as additional rewards for participating in the protocol.
3. Lending aBTC in Echo Lending: Users can now deposit their aBTC into Echo Lending to earn yield. This lending process allows them to accrue an interest rate, and Echo boosts their returns with an additional APT yield of up to 12%.
4. (Optional) Staking APT Yield: For those looking to maximize their returns, users can stake the APT yield obtained from Echo Lending into the Echo Validator. By doing so, they can earn an additional 7% yield on their staked APT, further increasing their profits.
Complete Workflow Rewards: Users who follow the entire process will earn:
BTC L2 points (e.g., from Babylon staking)
Echo Protocol points for using the protocol
APT yield from Echo Lending
APT validator rewards (if they stake their yield)
This end-to-end process showcases the various ways users can optimize their BTC assets on Echo Protocol, from staking to bridging, lending, and staking once again.
Through Echo Protocol, users can combine BTC L2 points, Echo points, a boosted APT yield of 12%, and an additional 7% staking yield, allowing them to generate impressive returns while maintaining security and flexibility in their assets across multiple layers and processes.
