Key Benefits

Granite has mitigated the most significant risks associated with Cefi and DeFi lending/borrowing:

• Decentralized: Granite is a DeFi protocol built on the Stacks Bitcoin layer using the sBTC bridge to bring Bitcoin into DeFi, allowing users to avoid the centralization risk of CeFi lenders and custodial wrappers

• Non-custodial: Granite uses a non-custodial architecture, so you retain complete authority over your digital assets while lending and borrowing. All protocol interactions are controlled by transparent smart contracts that you directly interact with

• No rehypothecation or “pooled-risk”: Granite never lends out collateral and only has a single borrowable asset per market, eliminating liquidity risk for borrowers and the “cross-margin pool-risk” that exposes all users to the downside of the riskiest borrowable asset

• Isolated Markets: Granite’s markets each have a single borrowable stablecoin, preventing cross-contamination of risks between different assets

• Soft liquidations: Unlike other protocols that liquidate 50-100% of a position, liquidations on Granite only occur up to the point of restoring solvency. This protects borrowers from excessive collateral loss and is more favorable than traditional DeFi liquidation mechanisms.

• Offline position tracking: Granite supports configurable Telegram notifications to track debt ratios, interest rates, and account health metrics.

• Safety Module: Granite provides an extra layer of security for liquidity providers against bad debt by allowing LPs to stake their position to be a junior tranche “first line of defense”.