Echo Protocol
  • INTRODUCTION
    • Disclaimer
  • Overview
    • 💿Challenges within Bitcoin
    • 💿Echo's Solution
    • 💿Echo Protocol
    • 💿Key Advantages
  • Echo Architecture
    • 💽Protocol Architecture
    • 💽Technical Architecture
  • Echo Integration
    • 📼B² Network
    • 📼UniRouter
  • Echo Liquid Restaking Tokens
    • 🛠️Introduction to aBTC
    • 🛠️Introduction to eAPT
  • Echo APP Docs
    • 🎙️Bridging uBTC
    • 🎙️Echo Vault
    • 🎙️Echo Strategy
    • 🎙️Echo Lending
  • Tokenomics
    • 🪙$ECHO
    • 🪙Echo Points
  • FAQ
    • 💬aBTC
    • 💬Audits
  • 🔗Quick Links
    • Echo Website
    • Echo X (Twitter)
    • Echo Bridge
    • Echo GitHub
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On this page
  • Echo’s BTC Liquidity & Aggregation Layer
  • Echo's BTC Yield Layer
  • Echo LST Infrastructure Layer
  1. Overview

Echo's Solution

PreviousChallenges within BitcoinNextEcho Protocol

Last updated 12 days ago

Echo’s BTC Liquidity & Aggregation Layer

Unlike traditional protocols, Echo is designed to bridge BTC liquidity across different chains directly into the MoveVM, EVM and SVM ecosystem. Our Vault solution enables users to deposit BTC of different standards like fBTC, wBTC and uBTC, receive a native unified BTC and can interact with DeFi applications without relying on conventional Bitcoin staking protocols. Echo strives to make the BTC ecosystem a safe and transparent environment for users to stake and deploy Bitcoin onchain and eliminate bad actors within the space. Therefore, we partner up with leading PoR service providers like Chainlink and Redstone to ensure the safety and transparency of each BTC asset that we accept in our Echo Vault.

  • Users can stake native BTC, BTC LSTs and wrapped BTC assets on Echo's Aggregation & Liquidity Layer.

  • For native BTC, Echo stakes them on platforms like Babylon, Eigenlayer, and Symbiotic before minting the Echo's unified BTC on the user’s chosen target chain.

  • Echo offers various Vault solutions across ecosystems such as Aptos, Movement, Morph, Hemi and Solana, allowing users to stake their BTC assets and earn boosted yields while engaging in DeFi activities.

  • By staking in any of Echo’s Vaults, users’ BTC assets are locked on the main chain, enabling them to participate in DeFi activities on their target chain using Echo’s unified BTC.

  • Each BTC asset that is accepted into Echo Vault has to undergo a PoR with ChainLink/Redstone and fullfil certain strict criteria set by Echo to ensure that the underlying BTC assets are safe and secure. Each asset will also undergo a strict DD process performed by the Echo team who will monitor both its on-chain and off-chain activities.

  • There will be a real-time PoR feed to ensure that all the unified BTC minted by Echo are backed by 1:1 by the different BTC assets that are locked by Echo to ensure that there is no depegging risk between unified BTC and underlying basket of BTC assets backing it.

Echo's BTC Yield Layer

With Echo’s unified BTC, users can optimize and maximize their yield through our range of BTCFi products:

a) Echo Strategy Automates yield optimization across DeFi by integrating multiple protocols for the best yields and borrowing rates, offering strategies like Leveraged Liquid Staking and Lending/Borrowing optimization, all while rebalancing user assets.

b) eMSTR

Echo’s eMSTR is the first truly onchain strategy that provides users to hold leveraged position on BTC without facing any liquidation risk. Echo’s eMSTR is able to generate a higher exposure than traditional buy-and-hold strategy on Bitcoin from its ability to issue convertible notes at low cost of capital. It utilizes our on-chain convertible note and fund structure to offer users a minimum of 2.5x leverage on BTC. On top of that, ESTR being fully onchain is able to cherry pick characteristics of Web3 dApps such as lending protocols and further lower the WACC (Weighted average cost of capital)

  • Multiple X factor of Bitcoin exposure without liquidation

  • Protocol being able to capture both the TVL and value of premium directly and not give up all to arbitrageurs

  • Financial engineering to create both an equity-like and convertible-borrowing product which captures a wider investor base along risk-reward curve preference

c) CeDeFi

Echo leverages Ceffu's custody infrastructure to enable delta-neutral trading strategies while maintaining asset security. This provides users with a stable return by staking their native BTC while allowing them to generate more yield with our Echo’s unified BTC on chain. Dual earning capability

Echo LST Infrastructure Layer

Echo offers a secure, transparent, and efficient solution for BTC in DeFi, simplifying the integration of BTC into DeFi ecosystems by addressing key challenges:

a) Pricing Efficiency Active arbitrage ensures Echo’s unified BTC trade efficiently, maintaining its pricing with native BTC price.

b) Depegging Risk Echo’s unified BTC is 1:1 backed by Bitcoin assets with clear Proof-of-Reserve, preventing depegging and bad debt.

c) Liquidity & Slippage Echo ensures that sufficient liquidity across DEXs, minimizing slippage and maximizing asset usability.

d) Maximize Utilization We guide users to fully utilize BTC assets across DeFi protocols, boosting productivity beyond simple liquidity seeding.

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