The positioning of Echo Protocol is an important bridge connecting the Aptos and Bitcoin ecosystems.

Written by: Haotian

How should we view the latest Pre-seed round financing of the BTCFi track @EchoProtocol_? Besides the investment from Arthur Hayes, the biggest highlight is that

the @Aptos public chain has stepped in, directly providing a 10% APY yield guarantee. Why? Let me briefly share my understanding:

1) It must be reiterated that the BTCFi track continues to attract attention not only because a large number of infrastructures built in the BTC ecosystem need a DeFi moment, but also because it serves as a major channel connecting a vast native BTC asset pool with numerous EVM-Compatible chains, Move-based chains, Solana-based chains, and RWA application scenarios.

Although other chains also have various Wrapped versions of BTC for DeFi pathways, the ability to achieve cross-chain asset transfers in a native manner, and to aggregate diverse yield possibilities, makes BTCFi more likely to capture the attention of every BTC miner, the institutions behind ETFs, and every BTC holder. This is the fundamental reason why Echo Protocol, a project in the Aptos ecosystem, is entering the BTCFi space.

2) Echo Protocol has chosen the cross-chain bridge solution from @BSquaredNetwork, where users' BTC is transferred across chains to the B² Network via the B² Bridge, and then converted into uBTC through a pre-deployed UniRouter, which is subsequently synchronized and converted into aBTC in the Aptos ecosystem, with aBTC deposited into a lending platform to generate yield.

This technical logic is not complex, as BSquare is a relatively hardcore modular BTC layer2 solution: B² Hub provides a modular DA layer, while zkBridge offers a secure cross-chain method.

Specifically, B² has made public a trusted secure multi-signature address for storing BTC assets. When zkOracle nodes monitor and record the inflow of assets, they will generate a ZK Proof of the deposit status, which will be passed to the AA smart contract deployed on B². After the contract verifies that the ZK proof information is correct, it will mint and release the assets to the user's address on the B² chain. Additionally, with the constraints of the BitVM challenge mechanism, if users have doubts about the changes in cross-chain asset status, they can initiate a challenge to the B² Hub to ensure the security of cross-chain assets.

Since zkBridge is specially customized for B² by @PolyhedraZK, it supports cross-chain interoperability of assets between Move-based public chains and the BTC chain, which is also the technical key for Echo Protocol to quickly enter the BTCFi space through B² Network.

3) It is well known that the Move language has a natural commonality with the object-based account structure and Bitcoin's UTXO structure, and the market and ecological performance of Move-based public chains during this cycle has been quite good, especially represented by Aptos and SUI. Thanks to the security and financial preference characteristics of the Move language, Move-based public chains have always been regarded as the main battlefield for the "new DeFi light."

In fact, after Aptos achieved a public chain performance of tens of thousands of TPS, it has been tirelessly expanding its DeFi application ecosystem.

In the past six months, Aptos has partnered with Tether to introduce the stablecoin USDT, collaborated with Ondo to access RWA real assets, and has also ventured into the gaming sector in partnership with NBCUniversal, among other close collaborations in distributed AI models with io. With the outstanding performance of several popular applications like tapos cat, user scale and transaction volume have reached top levels.

Based on this background, the strategic intention of #Aptos to embrace the #BTCFi ecosystem is self-evident, and the positioning of Echo Protocol serves as an important bridge connecting the two major ecosystems.

Moreover, now that this set of strategic collaborations has been achieved, Bsquare points, Echo points, and even Babylon points will all be included, and behind these expectations, there are also real APT token rewards from Aptos to back them up.

(It must be said that the support from the Sui and Aptos foundations for the development of the DeFi ecosystem is truly exceptional.)

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