Econia Ecosystem Spotlight: Echelon
Earn, Borrow, & Trade Securely
Echelon is one of the latest entrants to the Aptos DeFi Ecosystem and the first grant recipient of the Thala Labs and Aptos Foundation Ecosystem DeFi Fund. Echelon’s key value prop is offering the highest capital-efficient money market within Aptos, in addition to supporting a variety of asset collateral types . This protocol arsenal is now strengthened by Echelon’s arrival to the Econia Ecosystem and the launch of their margin trading terminal.
Highlighting Echelon’s Efficiency Mode
What separates Echelon from other money markets in the space is its efficiency mode. Efficiency mode enables users to maximize their borrowing power on particular assets. DeFi money is designed to be over-collateralized — a user cannot borrow more funds than what they’ve deposited into the protocol. The amount of funds a user can borrow against their collateral is determined by their deposited asset’s Loan-To-Value Ratio (LTV).
LTV can be described as the amount of money that can be borrowed against $1 of a specific type of collateral. For example:
If the lzUSDC LTV = 80% or 0.80, then, if user deposits $100 of lzUSDC into Echelon, they can borrow up to $80
Echelon’s Efficiency Mode (E-Mode) provides users higher LTV ratios for correlated assets, such as bridged stablecoins, MOD, and staked / non-staked APT — Hence, users are able to borrow more capital against these collateral types. This is particularly helpful for users wishing to execute a 10x leveraged staking strategy.
Introducing Echelon’s Econia-Powered Trading Terminal
The Echelon development team leveraged the Econia Labs Reference Frontend to facilitate their product development. With the launch of their new trading terminal, Aptos users now have a premium on-chain venue to margin trade, with full access to the key features of Econia.
- Ecosystem best pricing
- Atomic settlement
- Access to limit order and market order execution
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