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Echo Exchange

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Echo Exchange

Cryptocurrencies

Echo Exchange is a CEX because the primary benefit of a DEX is anonymity and non-custodial wallets. This is less valuable to Echo as the Echo Brokerage will require KYC legally to function. We envisage that most people who want to use the Echo Exchange will also want to use the Echo Brokerage making the main benefits of a DEX redundant. We believe Echo will be a bridge for more people to become interested in the crypto space and therefore a CEX fits our vision, echonomics and long term business model. Echo Exchange will focus mainly on top cap cryptocurrencies alongside smaller tokens in its emerging markets section.

Cloud Services

We understand the frustration dealing with a CEX that unwittingly fails or has server issues. We will do our utmost to ensure the stability of Echo Exchange through scalable cloud service solutions. Although it was previously frowned upon for banking services to use public cloud services ahead of private infrastructure, it is now commonplace in fintech to use hybrid cloud environments to keep sensitive data private whilst using the public cloud for day-to-day use. We believe a hybrid cloud environment strikes a good balance for the Echo Exchange.

Liquidity Pools

For an effective exchange it is crucial that there is enough liquidity in the exchange to absorb market manipulation. Echo will use an AMM or automated market maker commonly seen in DEXs. This means that you provide an equal amount of the trading pair as liquid e.g. BTC/ETH in return for a % of the fees earned from the pool displayed as an annual return. This incentivised liquidity pooling is a way for Echo Exchange to compete with other leading CEX’s and provide the capacity for it to deal with large volumes of potentially volatile trading.

Echo offers 3 main markets; they are the crypto mutual's in the brokerage and the spot and derivates market in the Echo Exchange.

Spot & Derivatives

As far as cryptocurrency is concerned, Echo offers 3 main markets; they are the crypto mutual's in the brokerage and the spot and derivatives market in the Echo Exchange. Leverage is available and variable based on both the asset and your jurisdiction.

The spot market or cash market is used during a cryptocurrency transaction where both the buyer and seller make their individual transfers with an immediate settlement of the transactions following. There is no delay in this market type as the immediate exchange of cryptocurrency occurs once the transaction is concluded.

When a cryptocurrency is purchased from Echo Exchange, it is the spot market that is in operation at that moment because all transactions take place at the same time and also conclude at the same time. Derivatives are more like financial tools than assets. In the derivatives market, participants conduct transactions using contracts instead of crypto assets. The value of the contracts is linked to the crypto assets chosen.

Echo Exchange offers:

Options: This contract enables a buyer or seller to make transactions with a particular asset at a predetermined price while working with a specific timeline. The trader is not mandated to buy the asset according to the contract, which is a clear distinction between options and futures.

Futures: This contract obligates a trader to either buy or sell an asset at a predetermined future date and price. Perpetual and quarterly contracts are available.

Fiat Bridges

Echo will offer the ability to get fiat currency on and off the platform like other CEX’s. It is likely that Echo will partner with both third party and third generation payment solution providers to come up with a viable solution for transferring fiat quickly and cost effectively.