💽Technical Architecture
Last updated
Last updated
This diagram illustrates the architecture of Echo Protocol, a cross-chain solution that seamlessly integrates Bitcoin (BTC) with the Aptos ecosystem and its associated DeFi protocols. Here's a detailed breakdown of the key components and processes:
BTC Transfer via Echo Bridge:
On the left, BTC can be transferred from the Bitcoin network and second-layer solutions (e.g., Bitcoin L2).
Through the Echo Bridge Smart Contract, BTC is received and distributed onto the Aptos network as aBTC (BTC pegged on Aptos). During this process, users are also rewarded with Echo points as an incentive.
aBTC Deposits and Lending:
Users can deposit aBTC into Echo Lending, where they are incentivized with APT (the native token of Aptos). Additionally, users have the option to borrow stablecoins such as APT or USDC.
Echo LSD (Liquid Staking Derivatives) and eAPT:
Users can leverage their rewards or borrowed APT to participate in Echo LSD, earning eAPT (Aptos-based liquid staking derivatives). By holding eAPT, users can further engage in Echo Restaking, providing staking assurance for Move Layer2 and earning profits in return.
DeFi Integration and aBTC/eAPT Utilization:
aBTC/eAPT seamlessly integrate with existing protocols on the Aptos network, allowing users to interact with DeFi ecosystems, such as decentralized exchanges (DEXs) or lending platforms, using their aBTC/eAPT tokens.
Extension to Move Layer2:
Through Move Layer2, users can utilize eAPT to maximize staking yields and participate in governance, further enhancing their influence and returns.
This architecture demonstrates how Echo Protocol enables the fluid transfer and utilization of Bitcoin within the Aptos 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 within the Aptos network. This innovation bridges the gap between Bitcoin's liquidity and Aptos' burgeoning DeFi landscape, empowering users to generate substantial returns and engage in decentralized governance.
