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Echo Token Utility

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Echo Token Utility

Echo Passive Mutual

Only available for purchase with Echo Token.

A mutual fund is a type of security that tracks an asset such as an index fund. The Echo Passive Mutual will contain a broad range of asset classes; creating a basket of assets which should create safe, long term returns. The Echo passive Mutual will contain but not be limited to, public stock indexes, commodities, REITS, and our own Echo Crypto Mutual's. The Echo Passive Mutual will not be available on public stock exchanges.
We intend the Echo Passive Mutual to be the 'Vanguard' fund of tomorrow by making a diverse, all-in-one security on the blockchain.

Fee Reduction & Burn

All brokerage and exchange fees can be paid for in Echo Token offering a 25% discount on standard fees. Fee reductions for exchange include spot, margin and futures trading. Brokerage fee reduction applies to entrance only.
30% of Echo Token used to pay exchange and brokerage fees will be burned every quarter.

Echo DeFi Protocol

Echo Token used as collateral has reduced fees and higher LTV ratio. Echo token can also be staked in the safety module earning rewards based on the protocol fees with the risk of being slashed.
The Echo DeFi Protocol is better categorised as a decentralised liquidity market protocol. Echo users can become depositors or borrowers. Depositors provide funds to borrowers in return for interest on their deposit on a peer to contract system.
The safety staking module acts as insurance for shortfall events. An example of such an event would be if a popular stable coin loses its peg to the US dollar.

Governance

Echo Token governance works on a one token one vote basis.
Governance votes are likely to include but not limited to; new assets for the brokerage, new tokens for the DeFi protocol and tweaking risk parameters.

Private Investment Unlock

A minimum of $100,000 in equivalent Echo Token is required to be locked in the Echo DeFi protocol's safety staking module to gain access to private investment opportunities. This includes access to the Echo Hedge Fund.
All private investment opportunities follow the same concept of brokerage 'echoes'. These will include echoes of private companies, collectibles or whatever the Echo Team deems a viable asset class for our investors. The Echo Hedge Fund is a crypto focused hedge fund; expect higher potential returns and higher fees.

Echo Switch

Echo Token is used exclusively to pay for Echo Switch bridging costs.
Echo Switch is a bridging module designed to allow the quick transfer of assets across multiple chains without the requirement of having to go via the ETH mainnet. An example of this would be a direct bridge from Matic to Solana.

Echo Social Trading

Echo Token can be used to pay for the fees associated with trading as well as a method of compensation. Making passive investors into active investors increases the Echo Token burn rate.
Echo Social Trading allows you to 'echo' the trades of other partnered investors. This allows you to leverage experienced traders at no cost to yourself. Those participating in the program (those who are copied) benefit from generous compensation packages based on AUM.

Trading Bots

Echo Token can be used to pay for Trading Bot fees. Making passive investors into active investors increases the Echo Token burn rate.
Trading Bots can be set up with parameters of your choosing or by selecting prebuilt strategies. You will also be able to see the statistics of other top-earning trading bots and copy them if you choose.

Direct Competition

Binance (exchange)

Token Price $417 - $70 Billion Market Cap/Rank #4
Equivalent Echo Token Value = $70 (without burn)

Binance and their respective token BNB has the largest trade volume in the space and many exchanges feature their Binance Smart Chain. The Binance exchange is very efficient although it does suffer from some infrastructure issues during high traffic periods. Echo Exchange has to be able to compete with Binance if it is to reach the upper ranks of token market cap. Echo does have the advantage of a wider product offering than Binance and will remain chain agnostic to pull in the widest range of users.

Mirror (Synthetic Tokens)

Token Price $3.20 - $1.2 Billion Market Cap/Rank #250
Equivalent Echo Token Value = $1.20 (without burn)

Although similar at fist glance Mirror and other synthetic token providers rely on a collateral based system in order to mint the synthetic security. Echo owns the underlying asset and tethers it. Echo also answers the wider question of why use synthetics at all? Echo offers the DeFi protocol as a solution.

Aave (defi protocol)

Token Price $330 - $4.32 Billion Market Cap/Rank #34
Equivalent Echo Token Value = $4.32 (without burn)

Aave is the leading DeFi tool and our primary competition in the DeFi space. It’s peer-to-contract system is the best on the market and something Echo is looking to emulate. However, we believe it’s lack of product variety hurts it and that our ‘echoes’ will exponentially increase Echo’s TVL vs Aave. Aave token also suffers from a lack of utility compared to many tokens above it in the rankings.

Crypto.com (mixed)

Token Price $0.16 - $4.25 Billion Market Cap/Rank #36
Equivalent Echo Token Value = $4.25 (without burn)

Crypto.com and others like it (Nexo etc.) represent the move to incorporate fiat systems more closely with crypto for retail investors. The marketing is usually quite good but they are let down by a lack of product offering and at times very high fees. They lack the revenue streams to push through a ceiling which many of them are stuck in.

Indirect Competition

Government Legislation

Cryptocurrency is currently at the mercy of government legislation but Echo may suffer from this more than some due to our interaction with the ‘real’ markets. We will be sparing no expense on the finest legal professionals to protect our business model and investors. At the moment it seems unlikely we will be able to offer derivatives to the US, but it is something we will continue to monitor and evaluate further if regulatory constraints are updated.

0% Fee Exchanges (eToro/Robinhood)

As Echo steps into the brokerage space it faces competition from those outside the blockchain. Why buy stocks on Echo when you can get them on another digital platform? Normally this would be a real issue, and one of the reasons why previous attempts have not succeeded. Echo Brokerage however is paired with the Echo DeFi protocol; making tokenised stocks superior to non-tokenised stocks.

Digital Wealth Managers (UK: Nutmeg)

In the same vein as digital brokers, digital wealth managers outside the blockchain indirectly compete with Echo’s Asset Management. Echo has to be user friendly and accessible enough for its superior products and interest rates to prevail.