Protocol Architecture
Last updated
Last updated
1. Staking BTC on BTC Layer 2: Users begin by staking their native BTC on a BTC L2 network (e.g., Babylon staking protocol). In exchange for staking, they receive BTC LST (e.g. uBTC, pumpBTC) 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 their BTC LSTs, they can bridge this BTC LST or wrapped BTC (e.g. wBTC, fBTC) on Echo's Vault. Upon successful bridging, they receive Echo's unified BTC, which is the native version of BTC represented on each network. (For instance, aBTC on Aptos, mBTC on Movement, and mphBTC on Morph). At this stage, users can stake their Echo's unified BTC on Echo's yield layer (Echo's Strategy, eMSTR, Echo Lending), earning them Echo points as additional rewards for participating in the protocol.
3. Echo's Yield Layer: At this stage, users can stake their Echo's unified BTC on Echo's yield layer (Echo's Strategy, eMSTR, Echo Lending), earning them DeFI yield + Echo points as additional rewards for participating in the protocol.
4. aBTC in Echo Lending (Aptos): 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.
5. (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 points for using the protocol
Staking yield from Echo Strategy
APT validator rewards (if they stake their APT rewards on Aptos)
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, boosted yield of 7% DeFi, 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.
