💽Technical Architecture
Technical Architecture
This diagram illustrates the architecture of Echo Protocol, a cross-chain solution that seamlessly integrates Bitcoin ecosystem with other L1 and L2s and its associated DeFi protocols. Here's a detailed breakdown of the key components and processes:
BTC Transfer via Echo Vault:
Different BTC assets can be transferred from the Bitcoin network and second-layer solutions (e.g., Bitcoin L2) to Echo Vaults.
Through the Echo Bridge Smart Contract, BTC is received and distributed onto the target network (e.g. Aptos, Movement, Morph, Hemi) as Echo Unified BTC. During this process, users are also rewarded with Echo points as an incentive.
Echo BTCFi:
With Echo’s unified BTC, users can optimize and maximize their yield through our range of BTCFi products like Echo Strategy (leveraged liquid staking, lending/borrowing optimization), eMSTR (leveraged BTC).
DeFi Integration and Echo's Unified BTC Utilization:
Echo's unified BTC seamlessly integrate with existing protocols on the Aptos, Morph, Movement, Hemi allowing users to interact with DeFi ecosystems, such as decentralized exchanges (DEXs) or lending platforms.
Summary
This architecture demonstrates how Echo Protocol enables the fluid transfer and utilization of Bitcoin across different ecosystem, unlocking a range of DeFi opportunities. By participating in lending, staking, and liquid staking, users not only optimize their BTC holdings but also integrate with broader DeFi protocols across multiple ecosystems. This innovation bridges the gap between Bitcoin's liquidity and top ecosystems' burgeoning DeFi landscape, empowering users to generate substantial returns and engage in decentralized governance.
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