What Is Echo Protocol? A Leading BTCFi Protocol on Aptos

Key Takeaways 

‍

• Echo Protocol is one of the major BTCFi platforms on Aptos with a peak total value locked (TVL) of $878 million in May 2025.
  
  
• It powers aBTC, a one-to-one Bitcoin-backed liquid staking token that brings BTC into Aptos DeFi for yield generation, lending, and cross-chain use.
  
  
• Users can deploy aBTC in Echo Lending and other Aptos dApps to earn yields.
  
  
• Backed by major investors including Aptos, Spartan Group, Maelstrom (Arthur Hayes), and Selini Capital.
  
  
• Integrated into the Aptos DeFi ecosystem, enabling aBTC use in lending, liquidity provision, and strategy vaults through projects such as Cellana Finance and Hyperion.

‍

Introduction

‍

Echo Protocol is a BTCFi protocol on the Aptos blockchain. In only a few months it has become a major hub for Bitcoin liquidity in the Move ecosystem, reaching a peak TVL of $878 million in May 2025. At its core is aBTC, a one-to-one Bitcoin-backed liquid staking token that allows BTC holders to bridge Bitcoin into Aptos DeFi. With aBTC, users can earn yield, access decentralized lending markets, and participate in strategy vaults while keeping full Bitcoin exposure. Echo now facilitates roughly seventy percent of all BTC bridged to Aptos, making it a central player in BTC yield generation and liquidity provision on the network.

‍

What Is Echo Protocol?

‍

Echo Protocol is a Bitcoin liquidity aggregation and yield infrastructure layer on MoveVM designed to make Bitcoin productive for holders, ecosystems, and DeFi protocols. By unifying fragmented BTC liquidity, enabling seamless DeFi integration, and amplifying yield opportunities, Echo provides the foundational infrastructure for unlocking BTC utility across chains.

‍

How Echo Protocol Brings Bitcoin Into Aptos DeFi

‍

Echo Protocol is built to unlock Bitcoin’s full potential in Aptos and beyond through a multi-layer architecture that bridges, unifies, and deploys BTC liquidity across DeFi.

Layer One: Liquidity Aggregation for Bitcoin Assets on Aptos

Converts supported Bitcoin assets such as native BTC, uBTC and other wrapped forms into the unified aBTC standard, creating deeper liquidity pools and improving pricing.

Layer Two: Lending Markets for aBTC and Bitcoin

Unified BTC unlocks high-performance BTCFi products:

• Echo Strategy: Automated yield optimization across multiple DeFi protocols, including leveraged liquid staking and lending/borrowing optimization.
  
  
• eMSTR: On-chain leveraged Bitcoin exposure (minimum 2.5x) without liquidation risk, powered by convertible note structures and efficient capital use.
  
  
• CeDeFi: Combines Ceffu custody with delta-neutral trading, letting users earn stable returns on native BTC while generating additional on-chain yield.
  
  

Layer Three: LST Infrastructure Layer

Echo maintains efficiency and usability for unified BTC by keeping its price aligned with native BTC through active arbitrage. It prevents depegging with one to one asset backing, ensures deep liquidity across decentralized exchanges, and helps users fully deploy BTC assets across DeFi protocols for maximum productivity.

‍

Echo’s Role in Aptos

‍

Echo Protocol’s advantages come from both technology and execution:

• First-mover in BTCFi on Aptos, capturing early market share before competitors.
  
  
• Record-breaking Token Generation Event in July 2025, attracting both retail and institutional investors.
  
  
• Competitive, strategy-dependent yields on aBTC through vaults and lending markets.
  
  
• Deep integration with major Aptos DeFi protocols, allowing assets to be deployed in multiple strategies without leaving the ecosystem.

‍

$ECHO Tokenomics and Utility

‍

$ECHO’s tokenomics is designed to ensure efficient capital allocation, competitive pricing, and minimal adversarial behaviour within the network. This structure supports Echo’s long-term vision of enabling Bitcoin to become a yield-generating, composable asset while ensuring that value flows back to those who contribute meaningfully to the protocol.
‍

$ECHO plays a central role in the protocol and enables:

• Staking for $twECHO, the time-weighted value accrual token
  
  
• Revenue sharing from Echo’s BTCFi products
  
  
• Gauge-based emissions via $vetwECHO
  
  
• Governance and protocol upgrades

‍

Token Generation Event

The TGE took place in July 2025 using a bonding curve IDO model that started with lower prices and gradually increased as demand rose.

Exchange Listings

Following the TGE, $ECHO was listed on Binance Alpha, Gate, and KuCoin, giving the token immediate accessibility and liquidity in the global market.

‍

Security Framework of Echo Protocol

‍

Echo Protocol prioritizes protecting user assets through independent audits, reserve transparency, and rapid incident response.

Security Measures

• All smart contracts undergo independent third-party audits before deployment.
  
  
• Proof-of-Reserve systems from providers like Chainlink verify that Bitcoin reserves match circulating aBTC supply.
  
  
• Ongoing security reviews with ecosystem partners help identify and address vulnerabilities early.

‍

Backers and Ecosystem 

‍

Echo Protocol is supported by a mix of leading blockchain investors and integrated DeFi partners. This combination provides both the capital and the network needed for sustainable growth.

Key Backers

• Aptos Foundation: Strategic support for ecosystem integration and adoption.
  ‍
• Spartan Group: Investment and advisory expertise in digital asset markets.
  ‍
• Maelstrom: Founded by Arthur Hayes, bringing deep liquidity and trading experience.
  ‍
• Selini Capital: Institutional investment with a focus on DeFi infrastructure.
  
  

Ecosystem Integrations

aBTC is supported in multiple Aptos DeFi protocols such as Cellana Finance and Hyperion. Integrations with other platforms may be in discussion but should be confirmed via each project’s official channels.

‍

‍

Future Roadmap

‍

Echo Protocol’s development plan focuses on expanding its reach, deepening asset integrations, and introducing more advanced strategies for Bitcoin in DeFi.

Planned Developments

• Cross-Chain Expansion: Launch unified BTC assets tailored to each ecosystem like iBTC for IOTA, to unlock new yield opportunities.
  
  
• Additional Utility for $ECHO: Expanding the token’s role within Echo, deepening its integration across products and amplifying its value for holders.
  
  

These initiatives aim to strengthen Echo’s position as the primary BTC liquidity layer on Aptos while extending its utility across the wider DeFi ecosystem.

‍

How to Get Started with Echo

‍

1. Set Up an Aptos Wallet
   
   Download Backpack, enable Aptos, and fund it with APT for fees.
   
   
2. Bridge BTC
   
   Use Echo’s Aptos Vault to deposit supported BTC or Bitcoin Layer 2 assets to receive aBTC at a one-to-one rate.
   
   
3. Start Earning
   
   Deploy aBTC in Echo Lending or Echo Strategy to earn yield and Echo Points.

Conclusion

‍

Echo Protocol has quickly grown into a major BTCFi platform on Aptos. By introducing aBTC, it turns Bitcoin from a passive store of value into an active DeFi asset. Backed by top investors and integrated with major Aptos protocols, Echo is well positioned to continue serving as a key Bitcoin liquidity hub in the MoveVM ecosystem with cross-chain expansion and advanced strategies on the horizon.

‍

Learn more about Backpack

Exchange | Wallet | Twitter | Discord

‍

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Backpack. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Backpack is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice.

‍