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  • đź‘‹Welcome
  • Introduction
    • About Granite
    • Key Benefits
    • Stacks and sBTC
      • Stacks
      • sBTC
    • Audits and Bug Bounties
    • Quick Links
  • Core Protocol Features
    • Getting Started
      • Wallet Setup
      • Connecting to Granite
      • Assets
      • Bridging aeUSDC
      • Network Selection
      • Security Tips
    • Borrowing
      • How to Borrow
      • Managing Your Position
      • Liquidations
      • Position Monitoring & Alerts
    • Liquidity Provisioning
      • How to Lend
      • How to Withdraw
      • Interest Rate Model
  • Protocol Mechanics
    • Isolated Markets
      • Single Asset Pools
      • Benefits
    • No Rehypothecation
    • Interest Rates
      • Utilization Rate
      • Rate Calculation
      • Market Dynamics
    • Safety Mechanism
      • Risk Parameters
      • Protocol Reserve
      • Safety Module
    • Oracle Implementation
  • Protocol Infomation
  • Additional Resources
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  1. Introduction

About Granite

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Last updated 1 month ago

Bitcoin often sits idle in wallets due to limited DeFi functionality. Traditional Bitcoin-based lending solutions, CeFi or DeFi, force users to either accept custody risk from centralized lenders or unacceptable security tradeoffs DeFi liquidity protocols:

  • Centralization, either of the lender (e.g. Unchained) or the Bitcoin wrapper (e.g. wBTC)

  • Rehypothecation of collateral creates liquidity risk for borrowers

  • Multi-asset borrowing unwittingly turns borrowers into de facto lenders, and exposes all users to “cross-margin pool risk” of the riskiest borrowable asset

  • Liquidation practices are catastrophic for borrowers, wiping them out in downturns

Granite solves these issues by leveraging capabilities and to provide a truly decentralized, non-custodial lending solution native to the Bitcoin ecosystem. It enables:

  • Bitcoin Holders (Borrowers): to deposit their Bitcoin as collateral and borrow stablecoins, maintaining their BTC exposure while accessing liquidity

  • Liquidity Providers: to supply stablecoins to the protocol in order to earn passive yield from borrower interest payments

Stacks’ Bitcoin L2
sBTC