Echo Protocol

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Echo Protocol

Echo Protocol is a liquidity aggregation and yield infrastructure layer designed to integrate (BTC) into (DeFi) ecosystems. It aims to address the fragmentation of BTC liquidity various forms, such as native BTC, , and Tokens (LSTs), by providing a unified platform for users to deposit BTC and participate in yield-generating strategies. The protocol focuses on the Move ecosystem while also integrating with various solutions and DeFi protocols. [1] [2]

Overview

Echo Protocol functions as a multi-layered ecosystem comprising a BTC Liquidity & Aggregation Layer, a BTC LST Infrastructure Layer, and a BTC Yield Layer. The aggregation layer allows users to deposit different types of assets and receive a unified representation, simplifying interaction with DeFi applications. The LST infrastructure is designed to improve pricing efficiency, mitigate depegging risks, and minimize for BTC assets within . The yield layer provides various strategies, including leveraged , lending, borrowing, and specialized products like eMSTR, to help users optimize returns on their deposited BTC.

The protocol emphasizes creating a transparent and secure environment for BTC in DeFi, utilizing mechanisms like Proof-of- to ensure the safety of deposited assets. By building on the Move ecosystem and integrating with various networks, Echo Protocol seeks to expand the utility and accessibility of within the broader landscape. [1] [2]

History

Echo Protocol was launched in August 2024. In October 2024, the protocol secured pre-seed funding from investors. This period also saw the launch of the first whitelist event for community members to stake .

Throughout early 2025, Echo Protocol introduced several initiatives and product launches. An updated Echo Points system was announced in March 2025, followed by the launch of the Morph Layer Vault on Echo later that month, accompanied by a promotional campaign offering boosted Echo Points. April 2025 saw the introduction of the Neko Meowtrix: Edition and the Echo Nekowork ambassador program. The Odyssey event commenced in May 2025. In late June 2025, the protocol announced its feature on Alpha, with $ECHO token trading opened in early July 2025, followed by Alpha Points airdrop claims. The , ECHO, was formally introduced around the same time. [3] [4] [5] [6]

Technology

Echo Protocol's architecture is built around aggregating fragmented liquidity and providing yield opportunities. The core technology involves a liquidity and aggregation layer that accepts various forms of BTC, including native BTC, wrapped BTC tokens (such as and fBTC), and Tokens (LSTs) like and LBTC.. This layer unifies these disparate assets into a single representation, simplifying their use within applications.

A key component of the technology is the BTC LST Infrastructure Layer, which aims to facilitate the seamless integration of BTC LSTs into protocols. This infrastructure is designed to ensure efficient pricing, minimize during swaps, prevent depegging risks, and maximize the utilization of these assets across decentralized platforms. The protocol also incorporates a Proof-of-Reserve mechanism to provide transparency and security regarding the underlying assets backing the aggregated liquidity.

The Yield Layer, built as a hub primarily on the Move ecosystem, offers various strategies for users to earn yield on their deposited BTC. These strategies include leveraged , lending and borrowing markets, and structured products like eMSTR, which is described as offering leveraged positions without risk. The protocol also integrates with solutions, leveraging secure custody providers like Ceffu to potentially generate additional yield and provide stable returns.

Echo Protocol is designed to integrate with various native solutions, including Babylon, BSquared, and Bitlayer. It also integrates with protocols like UniRouter. [1] [2] [3]

Products and Features

Echo Protocol offers several core products and features to enable users to utilize their in :

  • Echo Vault: This feature allows users to stake various forms of and earn yield. The platform supports multi-chain vaults, enabling different ecosystems. As of June 2025, the (TVL) in Echo Vaults was reported to be over $120 million, with estimated maximum reaching up to 22% for certain strategies.
  • Echo Lending: Echo provides lending and borrowing markets for various assets, including , zUSDT, zUSDC, APT, and eAPT. Users can deposit assets to earn interest or borrow against their . As of June 2025, the total net assets in Echo Lending were reported to be over $220 million, with total borrowed assets exceeding $22 million.
  • Echo Strategy: The platform offers different strategies categorized by risk profiles (e.g., Safe, Moderate, Aggressive). These strategies deploy deposited assets into various protocols to maximize returns. Examples include Strategy (Safe, ~7.65% APY, TVL ~$26M), Lending Strategy (Moderate, ~5.92% , ~$7.2M), and Liquidity Strategy (Aggressive, ~5.83% APY, TVL ~$89k).
  • Bridging: Echo facilitates the bridging of uBTC, a form of unified , enabling its movement and use across different networks integrated with the protocol. [1] [2]

Liquid Restaking Tokens

Echo Protocol utilizes Restaking Tokens (LRTs) as a core component of its ecosystem. These tokens represent users' staked or deposited assets within the protocol, allowing users to maintain liquidity while earning yield. Key LRTs mentioned include and eAPT. is highlighted as a significant asset within the Move ecosystem, reportedly powering a substantial portion of the bridged to Move-based platforms.

Tokenomics

The of Echo Protocol involve the ECHO and a points system called Echo Points.

  • $ECHO Token: ECHO serves as the for the Echo Protocol ecosystem. Its specific functions within the protocol are outlined in the documentation. The token was formally introduced in June 2025, with trading commencing in early July 2025.
  • Echo Points: Echo Points are used within the protocol for various campaigns and reward systems. Users can earn points by participating in activities such as in vaults or engaging with specific strategies. These points have been used in events like the Odyssey and promotional boosts for specific vaults. [2] [5] [6] [3] [4]

Integrations

Echo Protocol is designed to integrate with various networks and protocols to enhance Bitcoin's utility in . It integrates with native solutions such as Babylon, BSquared, and Bitlayer. The protocol also integrates with UniRouter. Furthermore, Echo Protocol operates within the Move ecosystem, aiming to become a central hub on Move-based chains like . [2] [3]

Events and Campaigns

Echo Protocol has conducted several community-focused events and campaigns. These include the "Be an Echo " whitelist event in October 2024 and the "Neko Meowtrix: Edition" in April 2025, which introduced a system to recognize active community members. The "Neko Odyssey" was launched in May 2025 as a significant event. Promotional campaigns, such as the "Morph Vault Boost" offering multiplied Echo Points, have also been implemented to incentivize participation in specific vaults. The protocol also utilizes Echo Points in various reward systems and tutorials. [4] [3]

Partnerships

Echo Protocol is supported by investors and partners. The protocol leverages integration with Ceffu for secure custody solutions. Echo Protocol was also featured on Alpha, marking it as the first project to receive this feature. [1] [2] [5]

REFERENCES

[1]
www.echo-protocol.xyz

Official Website

Jul 7, 2025

[2]
echo-protocol.gitbook.io

GitBook Documentation

Jul 7, 2025

[3]
medium.com

Medium Profile

Jul 7, 2025

[4]
x.com

X Profile

Jul 7, 2025

[5]
x.com

Binance Alpha Announcement

Jul 7, 2025

[6]
medium.com

Introducing $ECHO Token

Jul 7, 2025

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