What is Echo Protocol (ECHO)?

Deep Dive

1. Purpose & Value Proposition

Echo solves Bitcoin’s limited DeFi utility by allowing users to deposit BTC in various forms (native BTC, liquid staking tokens like PumpBTC, wrapped assets like wBTC) and convert them into a unified liquidity layer. This lets BTC holders earn yield through lending, leveraged staking, and other strategies while maintaining exposure to Bitcoin’s value. Its Proof-of-Reserve system ensures transparency and minimizes depegging risks.

2. Technology & Architecture

Built on Aptos’ MoveVM for high throughput and security, Echo acts as a bridge between Bitcoin and smart contract platforms. It supports cross-chain vaults, enabling BTC to flow into DeFi on Solana, Aptos, and Ethereum-compatible chains. Key innovations include eMSTR (leveraged BTC positions without liquidation risk) and integration with institutional custodians like Ceffu for hybrid CeDeFi yield.

3. Tokenomics & Governance

$ECHO uses a vote-escrow (ve) model:
- Stakers lock tokens to earn twECHO (time-weighted rewards) and vetwECHO (governance power).
- Protocol revenue (from fees, lending spreads, etc.) is distributed proportionally to stakers.
- Governance decisions, like allocating emissions to liquidity pools, mimic CurveDAO’s gauge system. Penalties apply for early unstaking to encourage long-term alignment.

Conclusion

Echo Protocol reimagines Bitcoin as a productive DeFi asset, bridging its liquidity across chains while prioritizing security and yield optimization. As BTCFi gains traction, can Echo maintain its first-mover advantage on Aptos while expanding to newer Bitcoin Layer 2 ecosystems?