🪙$ECHO

$Echo

$ECHO is the underlying token powering all of Echo’s token economy. We have designed the token economics of $ECHO to incorporate several notable token designs such as VE (vote-escrow) and time weighted tokens. The mechanics of the token is as such:

$twEcho

Users stake $ECHO tokens to get $twECHO (time-weighted echo), which is the value-accruing token for Echo Protocol. The amount of $twECHO that is disbursed is calculated as such:

Where,

x = Number of days locked on Echo (minimum of 1 day, maximum of 365 days)

y = Amount of $ECHO tokens locked on Echo

The maximum duration of each lock cycle is 1 year (365 days), users must manually extend their lock by re-locking. $twECHO decays over 365 days and users will be able to redeem their locked $ECHO once lock has completed.

Echo’s revenue is derived from various streams, including:

(a) Bridging fees from Echo Vaults

(b) Echo money markets revenue (borrow/lending spread, liquidations)

(c) Echo LST fees

(d) Echo commission fees from users’ earnings from Echo’s BTCFi products

(e) Any other future features in Echo's roadmap. Echo Protocol will distribute the revenues across each epoch by the weight of each user’s $twECHO holdings.

Echo Protocol will distribute the revenues across each epoch by the weight of each user’s $twECHO holdings.

$vetwEcho

Users can participate in Echo Protocol’s governance through locking their $twECHO to get $vetwECHO. $vetwECHO is not tradable and serves as voting rights for any Echo Protocol’s on-chain proposals.

$vetwECHO has the ability to direct $ECHO emissions across each of the lending pool that echo supports through a gauge weighted voting mechanism, similar to CurveDAO. Users can use their $vetwECHO tokens to vote on specific lending pools to boost $ECHO incentives on the assets in the lending pool.

Echo Fuel

Echo Fuel is an ongoing programe to enhance liquidity for $aBTC on Aptos. It rewards users who are providing liquidity to $aBTC on DEXs across other Aptos ecosystem projects.

Users provide liquidity on Echo’s whitelisted DEXs to receive LP tokens, which represents a receipt on the liquidity provided and claim for the liquidity + any rewards.

Users stake LP position on Echo to get rewarded with boosted revenue and token emissions based on a multiplier. The minimum threshold to kickstart multiplier rewards is 10% of the LP value to the amount of $twECHO a User has. The multiplier is calculated as such:

Amount of LP deposited	Reward multiplier
10%	2x
100%	10x

The multiplier will be applied on the users’ $twECHO weight, determining the final allocated weight to distribute Echo protocol’s revenues and Echo emissions.

Should users wish to unstake their LP positions, the multiplier will not be applicable upon unstaking LP tokens, and rewards will be subject to a 10-90% penalty and re-distributed to current stakers. The penalty is calculated as follows:

Withdrawal period	Penalty
10 days	90%
100 days	0%

Currently, Echo protocol accepts the following LP positions:

• $aBTC/$APT

• $aBTC/$USDT

• $aBTC/$USDC

*Please take note that the tokenomics of Echo is subject to potential changes and may be updated in the future.