> For the complete documentation index, see [llms.txt](https://docs.granite.world/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.granite.world/introduction/about-granite.md).

# 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](/introduction/stacks-sbtc-usdcx-aeusdc/stacks.md) capabilities and [sBTC](/introduction/stacks-sbtc-usdcx-aeusdc/sbtc.md) 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