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’s first frontend uses push notifications to alert users to account health drops prior to liquidation, allowing borrowers to relax and receive relevant account alerts instead of staying glued to their screens

• 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”.