What is Echelon (ELON)?

Echelon runs on Aptos, Movement and Initia blockchains. The agreement aims to integrate liquidity from the Move ecosystem into a single financial infrastructure. Users can deposit the supported assets into the system, borrow different assets through mortgage, and earn interest income.

This platform is not limited to providing lending services. Through its product called Fixed Yield, users can get fixed revenue or build different strategies based solely on revenue rights. In addition, users providing liquidity can share transaction fees and interest paid by borrowing users.

Echelon is a multi-chain protocol operating in the fields of decentralized finance (DeFi), lending and fixed income products.

Project Mission

Echelon aims to more efficiently leverage mobility in the Move ecosystem. It hopes to allow users on different blockchains to conduct lending operations without centralized intermediaries.

Through mortgage systems, dynamic interest rate models and automated risk management, the agreement aims to provide users with a financial infrastructure that can more effectively utilize digital assets.

How the project works

In Echelon, lending operations are performed in quarantined markets. Each market covers specific mortgage assets and specific loan assets. This structure is designed to limit the spread of risks that may arise in one market to other markets.

The workflow of the system is as follows:

Users deposit supported cryptocurrency assets into the loan pool. The assets deposited can be used by users who need to borrow money. Users who need to borrow money deposit collateral. Users can borrow funds based on the loan to value ratio (LTV) allowed by the collateral. Interest will be incurred during the borrowing period. Interest paid is distributed to users who provide assets to the pool.

Interest rates in each market are automatically determined based on supply and demand. When liquidity in the pool decreases, borrowing costs rise; when liquidity increases, interest rates may fall.

The agreement also supports the architectures of E-Mode (which provides a higher loan-to-value ratio for similar assets) and Isolated Mode (which manages each market independently).

Borrowing users need to keep the LTV ratio below the set upper limit. If the ratio rises, users can deposit additional collateral or repay part of their debt. If the LTV ratio exceeds the maximum threshold, the position faces liquidation. At this point, other users can obtain some collateral at a discounted price by paying off their debts. According to official documents, clearing operations typically charge a fixed clearing fee of 10%.

Echelon uses Chainlink, Pyth, and Switchboard oracles to obtain price data and provides an interoperable infrastructure between supported networks through LayerZero and Wormhole integration.

Users who provide assets to the lending pool can withdraw their deposited assets and accumulated interest at any time.

Project Concept and Vision

Echelon aims to establish a unified lending infrastructure for Move-based blockchain. The agreement hopes to make more efficient use of digital assets on different networks and allow users to access decentralized financial services through a single platform.

In the long term, the goal is to integrate lending products, fixed income solutions and liquidity services into the same ecosystem to support financial applications in the Move ecosystem.

Tokens and ecosystems

Echelon runs on the Aptos, Movement and Initia blockchains. The agreement works with different infrastructure providers to strengthen lending infrastructure and provide secure pricing data.

The main partners and integrations listed on the official ecosystem page include:

Aptos

Movement

Initia

LayerZero

Wormhole

Chainlink

Pyth Network

Switchboard

Circle

Tether

Ethena Labs

This protocol does not rely on a single source to obtain price data, but instead uses both Chainlink, Pyth and Switchboard oracle solutions. The oracle is a system that transmits price data from the outside world to the blockchain. When delays or problems occur with one data source, other sources step in to ensure that the system continues to run.

For liquid pledged assets (LSTs), Echelon uses special pricing calculations designed to prevent sudden price fluctuations from increasing liquidation risk.

ELON Tokens

The native token of the Echelon ecosystem is ELON.

Token information is as follows:

Token name: Echelon Token

Symbol: ELON

Network: Aptos

Total supply: 100,000,000

Maximum supply: 100,000,000

Circulation supply: 13,500,000 ELON

The main functions of the ELON token include:

Support ecosystem incentives

for community incentive distribution

Support liquidity plans

Contribute to long-term development of the agreement

Token usage scenarios

ELON tokens are used in multiple areas where ecosystems stimulate and support platform growth.

The main use scenarios include:

Community incentives

Ecosystem incentives

Liquidity plan

Centralized and decentralized exchange liquidity

Treasury funds

Core team incentives

The official documents of investor allocation

do not contain verifiable information about the governance rights of ELON token holders.

Token allocation

Official token allocation is as follows:

Community and ecosystem: 30%

Treasury: 20%

Investors: 20%

Core Contributors: 19%

Ethena Labs: 5%

Airdrop: 3.5%

Liquidity and Exchange Listing: 2.5%

The total supply of ELON tokens is limited to 100 million. The official document also announced the unlocking schedule of tokens (emission plan).

Roadmap

Official sources have not published a detailed roadmap with specific dates. However, completed functions and existing products are listed in the documentation.

Progress completed:

Launched on the Aptos network.

Support for Movement and Initia networks is now available.

The lending market has been put into use.

Developed the Fixed Yield product.

Integrate multi-oracle infrastructure.

announced the ELON token economy model.

Highlights

Echelon is a decentralized financial infrastructure lending protocol for the Move ecosystem.

Outstanding features of the project include:

Supports Aptos, Movement and Initia

Isolate lending markets

Dynamic interest rate models

Multi-oracle infrastructure

Fixed Yield products

User assets are controlled by oneself

Project Link

Website

Twitter

Discord

This content is based on general market data and does not constitute investment advice. It is recommended that you study on your own.