What Is ECHO? A Complete Guide to Bitcoin Liquidity Aggregation and Yield Platform

What is ECHO?

ECHO is a Bitcoin liquidity aggregation and yield infrastructure platform designed to address the challenges of standard diversity and integration of BTC in the DeFi world. Users can deposit native BTC, BTC LST (Liquid Staking Tokens), or wBTC and the system will mint a unified Echo BTC (aBTC), making it easier for users to operate in DeFi and enhance yield efficiency.

ECHO does not rely on traditional Bitcoin staking protocols, but instead builds a BTCFi ecosystem compatible with multiple chains (MoveVM, EVM, SVM) through integration with BTC Layer 2 protocols such as Babylon and Bitlayer.

What problems does ECHO solve?

1. BTC’s smart contract capabilities are insufficient: The Bitcoin mainnet lacks native smart contract support, while ECHO provides richer DeFi access capabilities through sidechains and L2 solutions.
2. Bitcoin asset standard fragmentation P: The market has various forms of BTC: native BTC, LST (such as PumpBTC, LBTC), wBTC, etc., making integration difficult. ECHO provides unified asset mapping to simplify liquidity.
3. High integration difficulty in DeFi: Due to issues such as transparency, liquidity, and price efficiency, it is challenging to securely and efficiently integrate different BTC assets into DeFi. ECHO enhances compatibility through mechanisms such as PoR (Proof-of-Reserve), price arbitrage, and liquidity incentives.

How to use ECHO to participate in BTC earnings?

Users can deposit BTC assets into ECHO’s Vault, and the system will mint aBTC. Users can then participate in:

• Echo Strategy: Automated yield optimization, covering strategies such as leveraged staking, lending, and more;
• eMSTR product: Provides high-leverage BTC long positions with no settlement risk through on-chain convertible notes;
• CeDeFi model: Combining centralized custody with on-chain yield, balancing security and gains.

ECHO offers an annualized return of up to 7%, and guarantees asset security through a PoR mechanism audited by institutions such as Chainlink and RedStone.

ECHO Token and Incentive Mechanism

The native token in the ECHO ecosystem is $ECHO. Users can lock it up to exchange for time-weighted token $twECHO and further stake it to obtain governance token $vetwECHO, participating in platform governance and incentive direction setting.

In addition, through the Echo Points reward system, users can earn points in the following ways:

• Bridge BTC assets;
• Use Echo Strategy;
• Lending on Echo Lend;
• Hold Liquidity LP tokens.

Points can be used for subsequent airdrops, reward distributions, etc.

ECHO has been listed on the Gate spot market. The new coin is highly volatile, please trade cautiously and be aware of the risks:https://www.gate.com/trade/ECHO_USDT

Summary

ECHO provides an innovative and robust on-chain yield platform for BTC holders, not only addressing the core challenges of liquidity integration but also offering users more participation opportunities through yield strategies and governance mechanisms. For users looking to deploy BTC in DeFi, ECHO is an emerging project worth paying attention to.