Granite Unveils Unique Bitcoin DeFi Protocol Focusing on Security

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

Introducing a pioneering DeFi liquidity protocol that aims to enhance trust and security in the DeFi space

Granite, an innovative Bitcoin DeFi liquidity protocol, provides users with unmatched security and sovereignty over their Bitcoin assets, has officially launched. Developed under the guidance of Trust Machines, Granite signifies a major advancement in the DeFi ecosystem, establishing new benchmarks for transparency and user-focused financial services—bolstered by the capabilities of Bitcoin L2s.

Granite allows BTC holders to engage with DeFi without relying on centralized custodians by utilizing the recently released Nakamoto upgrade of Stacks and the sBTC Bitcoin bridge. The Nakamoto upgrade has enhanced Stacks’ block speed by 100 times, while preserving its unique proof-of-transfer (PoX) consensus mechanism and Bitcoin finality. sBTC operates as an open-source Bitcoin bridge that is secured and overseen by an open consortium of Stacks validators through a threshold signature script on the Bitcoin blockchain, facilitating permissionless and decentralized application of BTC in DeFi. Collectively, these advancements pave the way for Bitcoin DeFi.

“Today, there’s no secure way to utilize BTC in DeFi,” stated Blaize Wallace, Founding Contributor to Granite. “Protocols have chosen to prioritize returns at the expense of counterparty and protocol risk. Granite takes a different stance.”

Granite offers a borrower-focused DeFi liquidity framework that prioritizes asset safety, lowers liquidation risk, and lets users customize their risk exposure.

No rehypothecation: By refraining from lending out users’ collateral and maintaining a single borrowable asset per market, Granite eradicates the prevalent DeFi “pooled-risk” structure that exposes all participants to the liabilities of the riskiest pool assets.
Liquidation to solvency: Traditional DeFi protocols liquidate 50-100% of a position, potentially resulting in the loss of borrowers’ collateral. Granite adopts “soft liquidations” which liquidate solely to the level of solvency, offering over-leveraged borrowers the chance to navigate downturns with minimal losses.
Offline position monitoring: Push notifications that monitor account health and interest rates enable borrowers to relax and receive pertinent account alerts rather than being glued to their screens.
Tranched LP positions: LPs can stake their assets to enter a junior risk tranche that may offer greater rewards, allowing them to customize their risk profiles, with all LPs being shielded by the protocol reserve as an initial line of defense.

Despite being the most capitalized cryptocurrency, a significant amount of Bitcoin remains idle and unproductive, unused by its owners. In contrast, other blockchains showcase their native cryptocurrencies (like ETH) actively deployed to validators (staking) and within DeFi protocols as collateral or liquidity pairs. As a decentralized, non-custodial protocol, Granite offers transparency in lending and borrowing that has largely been absent on the Bitcoin blockchain, aiming to reverse this trend.

“Currently, only around 1% of Bitcoin is utilized in DeFi, primarily because Bitcoin users prioritize the security of their BTC,” noted Muneeb Ali, CEO and Co-Founder of Trust Machines. “Granite’s security-focused approach unlocks the potential to harness the remaining 99% of BTC capital. It’s the only liquidity protocol I would trust my BTC with.”

“Bitcoin is the most valuable asset you will ever own,” Wallace added. “Don’t jeopardize your stack with centralized wrappers or exploitative liquidation mechanisms. Granite facilitates safe access to the value inherent in your BTC. Never sell.”

To learn more about Granite, readers can visit http://www.granite.world

About Granite

Granite is an unprecedented Bitcoin DeFi liquidity protocol that empowers users with exceptional security and control over their Bitcoin assets, representing a notable evolution in the DeFi ecosystem, with a mission to define new standards for transparency and user-centric financial services—all supported by the strength of Bitcoin L2s.

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