Cayman Islands, Cayman Islands, September 12, 2024, Chainwire
The first-of-its-kind DeFi liquidity protocol that focuses on redefining trust and security for DeFi
Granite, an innovative DeFi liquidity protocol that provides 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 released Nakamoto upgrade and the Bitcoin bridge sBTC. The Nakamoto upgrade increased Stacks’ block speed by 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 signing script on the Bitcoin blockchain, enabling permissionless and decentralized use of BTC in DeFi. Together, these upgrades pave the way for Bitcoin DeFi.
“There is no safe way to use BTC in DeFi today,” said Blaize Wallace, founding contributor at Granite. “Protocols have decided to maximize returns at the expense of counterparty and protocol risk. Granite takes the opposite approach.”
Granite features a borrower-centric DeFi liquidity model that maximizes asset security, minimizes liquidation risk, and allows users to tailor their risk exposure.
- Without remortgage: By never lending out borrowers’ collateral and having only one loanable asset per market, Granite eliminates DeFi’s predominant “pooled risk” model that exposes all users to the downsides of riskier pooled assets.
- Liquidation until solvency: DeFi protocols typically liquidate 50-100% of a position, which can result in the loss of borrowers’ collateral. In contrast, Granite uses “soft liquidations” that liquidate only to the point of solvency, allowing borrowers with excess liquidity the opportunity to weather downturns with minimal losses.
- Offline position tracking: Push notifications that track account status and interest rates allow borrowers to relax and receive relevant account alerts instead of remaining glued to their screens.
- LP positions in tranches: LPs can stake their positions to enter a junior risk tranche that can 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 largest crypto asset by market cap, the majority of Bitcoins sit idle and unproductive, unused by their holders. Other blockchains show a stark contrast, with their native cryptocurrency (such as ETH) being actively deployed on validators (staking) and in DeFi protocols as collateral or liquidity pairs. As a non-custodial decentralized protocol, Granite brings transparency to lending and borrowing that has not typically been seen on the Bitcoin blockchain, aiming to reverse this trend.
“Right now, only about 1% of bitcoin is used in DeFi, largely because Bitcoin users want to ensure 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,” Wallace added. “Don’t risk your stack with centralized wrappers or predatory liquidation schemes. Granite helps you access the value of your BTC in the most secure way possible.” Never sell.“
For more information about Granite, readers can visit http://www.granite.world
About GraniteGranite is a first-of-its-kind Bitcoin DeFi liquidity protocol that provides users with unprecedented security and control over their Bitcoin assets. Granite represents a significant evolution in the DeFi landscape, with a mission to set new standards for transparency and user-centric financial services, all backed by the power of Bitcoin L2.
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ContactCommunications PartnerJayson Lynn[email protected]
This article was originally published on Chainwire
