🤌Protocol Features

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 that exposes all users to the downside of the riskiest pool assets.

• Liquidation to solvency: DeFi protocols will normally liquidate 50-100% of a position, a catastrophic event that wipes out 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.