Cayman Islands, Cayman Islands, September 12th, 2024, Chainwire
The first-of-its-kind DeFi liquidity protocol focusing on redefining trust and security for DeFi
Granite, a groundbreaking Bitcoin DeFi liquidity protocol that empowers users with unprecedented security and control over their Bitcoin assets, announced its launch today. Incubated by Trust Machines, Granite represents a significant evolution in the DeFi landscape, setting new standards for transparency and user-centric financial services – all backed by the power of Bitcoin L2s.
Granite enables BTC users to access DeFi without centralized custodians by leveraging Stacks’ recently launched Nakamoto upgrade and sBTC Bitcoin bridge. The Nakamoto upgrade increased Stacks’ block speed to 100x while maintaining its unique proof-of-transfer (PoX) consensus mechanism and Bitcoin finality. sBTC is an open-source Bitcoin bridge secured and managed by an open network of Stacks validators via a threshold signature script on the Bitcoin blockchain, allowing for the permissionless and decentralized use of BTC in DeFi. Together, these upgrades pave the way for Bitcoin DeFi.
“Today, there is no safe way to use BTC in DeFi,” said Blaize Wallace, Founding Contributor to Granite. “Protocols have decided to maximize returns at the cost of counterparty and protocol risk. Granite takes the opposite approach.”
Granite introduces a borrower-centric DeFi liquidity model that maximizes asset safety, minimizes liquidation risk, and allows users to tailor their risk exposure.
No Rehypothecation
By never lending out borrowers’ collateral and only having a single borrowable asset per market, Granite eliminates the predominant DeFi “pooled-risk” model, which exposes all users to the downside of the riskiest pool assets.
Liquidation to Solvency
DeFi protocols typically liquidate 50-100% of a position, which can result in the loss of borrowers' collateral. Granite instead uses “soft liquidations,” which liquidate only to the point of solvency, allowing overextended borrowers to weather downturns with minimal losses.
Offline Position Tracking
push notifications that track account health and interest rates allow borrowers to relax and receive relevant account alerts instead of staying glued to their screens.
Tranched LP Positions
LPs can stake their positions to enter a junior risk tranche that may receive higher rewards, tailoring their risk profile. All LPs are still protected by the protocol reserve as a first line of defense.
Despite being the most capitalized crypto asset, most bitcoin sits dormant and unproductive, unused by its holders. Other blockchains demonstrate a stark contrast, where their native cryptocurrency (such as ETH) is actively deployed to validators (staking) and DeFi protocols as collateral or liquidity pairs. As a decentralized non-custodial protocol, Granite brings transparency to lending and borrowing typically not seen on the Bitcoin blockchain, aiming to reverse this trend.
“At this time, only about 1% of Bitcoin is used in DeFi, largely because Bitcoin users want to make sure their BTC is secure first and foremost,” said Muneeb Ali, CEO and Co-Founder of Trust Machines. “Granite’s security-oriented approach creates an opportunity to begin unlocking the remaining 99% of BTC capital. It’s the only liquidity protocol I would consider using with my BTC.”
"Bitcoin is the most valuable asset you will ever own,” added Wallace. “Don’t risk your stack to centralized wrappers or predatory liquidation schemes. Granite helps you access the value in your BTC as safely as possible. Never sell.”
For more information about Granite, readers can visit their website.
About Granite
Granite is a first-of-its-kind Bitcoin DeFi liquidity protocol that empowers users with unprecedented security and control over their Bitcoin assets. It represents a significant evolution in the DeFi landscape, with a mission of setting new standards for transparency and user-centric financial services—all backed by the power of Bitcoin L2s.
Press Contact
Communications Partner
Jayson Lynn
