About Granite

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 Stacks’ Bitcoin L2 capabilities and sBTC 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