Echelon Launches Debt-Driven Move Appchain to Expand DeFi Ecosystem

Echelon, a decentralized lending protocol built on Aptos, has unveiled its new appchain, Echelon Chain, designed to revolutionize debt-driven decentralized finance (DeFi) on the Move ecosystem. The launch, announced on November 28, integrates Initia’s Interwoven Stack and Celestia’s modular blockchain technology, marking a major milestone for the platform.

Echelon Chain’s introduction follows a series of strategic advancements, including the Echelon Roadmap, which highlights over $100 million in total value locked (TVL) and $132 million in borrowed assets. The new appchain is poised to strengthen Echelon’s foothold in the rapidly growing DeFi sector by offering powerful tools for debt management and modular asset capture.

A standout feature of the Echelon Chain is its integration of Initia’s Interwoven Stack, which enables features such as LayerZero onboarding, access to Celestia-native assets, native USDC, and embedded oracles. These advancements are designed to enhance cross-chain compatibility and streamline the DeFi experience for users.

The platform’s primary focus is on enabling seamless debt management through atomic cross-chain composability and native liquidity hubs. These capabilities aim to offer more robust and scalable solutions within the decentralized finance space.

Echelon has also made strides in expanding its reach by raising $3.5 million in seed funding from prominent venture capital firms, including Amber Group, Laser Digital, Saison Capital, and others. The funds will be used to support the development of cross-chain deposit vaults, expand access to high-performance DeFi, and enhance the team with smart contract and full-stack engineers.

With a public testnet scheduled for later this year, Echelon plans to launch its mainnet alongside Initia’s rollout, signaling an exciting next step for its growth and contribution to the Move ecosystem.