# 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 --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.granite.world/introduction/about-granite.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.