Granite Launches as First-of-its-Variety Bitcoin DeFi Liquidity Protocol Prioritizing Safety and Belief – Blockonomi

ByTecha Viral
Granite Launches as First-of-its-Variety Bitcoin DeFi Liquidity Protocol Prioritizing Safety and Belief – Blockonomi

Cayman Islands, Cayman Islands, September twelfth, 2024, Chainwire

The primary-of-its-kind DeFi liquidity protocol specializing in redefining belief and safety for DeFi

Granite, a groundbreaking Bitcoin DeFi liquidity protocol that empowers customers with unprecedented safety and management over their Bitcoin property, at this time introduced its launch. Incubated by Belief Machines, Granite represents a big evolution within the DeFi panorama, setting new requirements for transparency and user-centric monetary companies – all backed by the ability of Bitcoin L2s.

Granite allows BTC customers to entry DeFi with out centralized custodians by leveraging Stacks’ recently-launched Nakamoto improve and sBTC Bitcoin bridge. The Nakamoto improve elevated Stacks’ block velocity 100x whereas sustaining its distinctive proof-of-transfer (PoX) consensus mechanism and Bitcoin finality. sBTC is an open-source Bitcoin bridge secured and managed by an open community of Stacks validators through a threshold signature script on the Bitcoin blockchain, permitting for the permissionless and decentralized use of BTC in DeFi. Collectively, these upgrades pave the way in which for Bitcoin DeFi.

“Today there is no safe way to use BTC in DeFi,” mentioned 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 mannequin that maximizes asset security, minimizes liquidation threat, and permits customers to tailor their threat publicity. 

  • No rehypothecation: by by no means lending out debtors’ collateral and solely having a single borrowable asset per market, Granite eliminates the predominant DeFi “pooled-risk” mannequin that exposes all customers to the draw back of the riskiest pool property.
  • Liquidation to solvency: DeFi protocols usually liquidate 50-100% of a place, which may end up in the lack of debtors’ collateral. Granite as a substitute makes use of “soft liquidations” which liquidate solely to the purpose of solvency, permitting overextended debtors the chance to climate downturns with minimal losses.
  • Offline place monitoring: push notifications that observe account well being and rates of interest enable debtors to calm down and obtain related account alerts as a substitute of staying glued to their screens.
  • Tranched LP positions: LPs can stake their positions to enter a junior threat tranche which will obtain larger rewards, tailoring their threat profile, and all LPs are nonetheless protected by the protocol reserve as a primary line of protection.

Regardless of being essentially the most capitalized crypto asset, most bitcoin sits dormant and unproductive, unused by its holders. Different blockchains show a stark distinction, the place their native cryptocurrency (reminiscent of 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 usually has not been seen on the Bitcoin blockchain, aiming to reverse this pattern.

“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,” mentioned Muneeb Ali, CEO and Co-Founding father of Belief 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 extra details about Granite, readers can please go to

About Granite

Granite is a first-of-its variety Bitcoin DeFi liquidity protocol empowering customers with unprecedented safety and management over their Bitcoin property, Granite represents the numerous evolution within the DeFi panorama, with a mission of setting new requirements for transparency and user-centric monetary companies – all backed by the ability of Bitcoin L2s.

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Jayson Lynn
jayson@trustmachines.co

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