Granite Launches as First-of-its-Kind Bitcoin DeFi Liquidity Protocol Prioritizing Security and Trust

Cayman
Islands,
Cayman
Islands,
September
12th,
2024,
Chainwire

The
first-of-its-kind
DeFi
liquidity
protocol
focusing
on
redefining
trust
and
security
for
DeFi

Granite,
a
groundbreaking
Bitcoin
DeFi
liquidity
protocol
that
empowers
users
with
unprecedented
security
and
control
over
their
Bitcoin
assets,
today
announced
its
launch.
Incubated
by

Trust
Machines,
Granite
represents
a
significant
evolution
in
the
DeFi
landscape,
setting
new
standards
for
transparency
and
user-centric
financial
services
–
all
backed
by
the
power
of
Bitcoin
L2s.

Granite
enables
BTC
users
to
access
DeFi
without
centralized
custodians
by
leveraging
Stacks’
recently-launched
Nakamoto
upgrade
and

sBTC
Bitcoin
bridge.
The
Nakamoto
upgrade
increased
Stacks’
block
speed
100x
while
maintaining
its
unique
proof-of-transfer
(PoX)
consensus
mechanism
and
Bitcoin
finality.
sBTC
is
an
open-source
Bitcoin
bridge
secured
and
managed
by
an
open
network
of
Stacks
validators
via
a
threshold
signature
script
on
the
Bitcoin
blockchain,
allowing
for
the
permissionless
and
decentralized
use
of
BTC
in
DeFi.
Together,
these
upgrades
pave
the
way
for

Bitcoin
DeFi.

“Today
there
is
no
safe
way
to
use
BTC
in
DeFi,”
said
Blaize
Wallace,
Founding
Contributor
to
Granite.
“Protocols
have
decided
to
maximize
returns
at
the
cost
of
counterparty
and
protocol
risk.
Granite
takes
the
opposite
approach.”

Granite
introduces
a
borrower-centric
DeFi
liquidity
model
that
maximizes
asset
safety,
minimizes
liquidation
risk,
and
allows
users
to
tailor
their
risk
exposure. 

• 
  No
  rehypothecation:
  by
  never
  
  lending
  out
  borrowers’
  collateral
  and
  only
  having
  a
  single
  borrowable
  asset
  per
  market,
  Granite
  eliminates
  the
  predominant
  DeFi
  “pooled-risk”
  model
  that
  exposes
  all
  users
  to
  the
  downside
  of
  the
  riskiest
  pool
  assets.
• 
  Liquidation
  to
  solvency:
  DeFi
  protocols
  typically
  liquidate
  50-100%
  of
  a
  position,
  which
  can
  result
  in
  the
  loss
  of
  borrowers’
  collateral.
  Granite
  instead
  uses
  “soft
  liquidations”
  which
  liquidate
  only
  to
  the
  point
  of
  solvency,
  allowing
  overextended
  borrowers
  the
  opportunity
  to
  weather
  downturns
  with
  minimal
  losses.
• 
  Offline
  position
  tracking:
  push
  notifications
  that
  track
  account
  health
  and
  interest
  rates
  allow
  borrowers
  to
  relax
  and
  receive
  relevant
  account
  alerts
  instead
  of
  staying
  glued
  to
  their
  screens.
• 
  Tranched
  LP
  positions:
  LPs
  can
  stake
  their
  positions
  to
  enter
  a
  junior
  risk
  tranche
  that
  may
  receive
  higher
  rewards,
  tailoring
  their
  risk
  profile,
  and
  all
  LPs
  are
  still
  protected
  by
  the
  protocol
  reserve
  as
  a
  first
  line
  of
  defense.

Despite
being
the
most
capitalized
crypto
asset,
most
bitcoin
sits
dormant
and
unproductive,
unused
by
its
holders.
Other
blockchains
demonstrate
a
stark
contrast,
where
their
native
cryptocurrency
(such
as
ETH)
is
actively
deployed
to
validators
(staking)
and
in
DeFi
protocols
as
collateral
or

liquidity
pairs.
As
a
decentralized
non-custodial
protocol,
Granite
brings
transparency
to
lending
and
borrowing
that
typically
has
not
been
seen
on
the
Bitcoin
blockchain,
aiming
to
reverse
this
trend.

“At
this
time,
only
about
1%
of
bitcoin
is
used
in
DeFi,
largely
because
Bitcoin
users
want
to
make
sure
their
BTC
is
secure
first
and
foremost,”
said
Muneeb
Ali,
CEO
and
Co-Founder
of
Trust
Machines.
“Granite’s
security-oriented
approach
creates
an
opportunity
to
begin
unlocking
the
remaining
99%
of
BTC
capital.
It’s
the
only
liquidity
protocol
I
would
consider
using
with
my
BTC.”

“Bitcoin
is
the
most
valuable
asset
you
will
ever
own,”
added
Wallace.
“Don’t
risk
your
stack
to
centralized
wrappers
or
predatory
liquidation
schemes.
Granite
helps
you
access
the
value
in
your
BTC
as
safely
as
possible.

Never
sell.”

For
more
information
about
Granite,
readers
can
please
visit

http://www.granite.world

About
Granite

Granite
is
a
first-of-its
kind
Bitcoin
DeFi
liquidity
protocol
empowering
users
with
unprecedented
security
and
control
over
their
Bitcoin
assets,
Granite
represents
the
significant
evolution
in
the
DeFi
landscape,
with
a
mission
of
setting
new
standards
for
transparency
and
user-centric
financial
services
–
all
backed
by
the
power
of
Bitcoin
L2s.

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Contact

Communications
Partner
Jayson
Lynn
[email protected]