Granite: Revolutionizing Bitcoin DeFi Liquidity

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

Introduction

Granite, a groundbreaking Bitcoin DeFi liquidity protocol, aims to redefine trust and security in decentralized finance (DeFi). Incubated by Trust Machines, it promises unprecedented control over Bitcoin assets while setting new standards for transparency in user-centric financial services.

Key Features of Granite

• Decentralized Access: By leveraging Stacks’ Nakamoto upgrade and sBTC Bitcoin bridge, Granite enables BTC users to engage in DeFi without relying on centralized custodians.
• Nakamoto Upgrade: This upgrade increased Stacks’ block speed by 100 times while maintaining its unique proof-of-transfer (PoX) consensus mechanism.
• Open-source Security: The sBTC bridge is managed by a network of Stacks validators, ensuring permissionless use of BTC in DeFi.

A New Approach to DeFi Risk

Blaize Wallace, a founding contributor to Granite, emphasizes the protocol’s focus on maximizing asset safety over returns. Here are some innovative strategies employed by Granite:
– No Rehypothecation: Granite avoids lending out borrowers’ collateral and only allows one borrowable asset per market, eliminating pooled-risk models.
– Soft Liquidations: Instead of liquidating 50-100% of a position, Granite liquidates only to the point of solvency, minimizing losses for borrowers.
– Real-time Position Tracking: Borrowers receive push notifications for account health and interest rate changes, relieving them from constant monitoring.
– Tranched LP Positions: Liquidity providers (LPs) can customize their risk profile and enhance rewards by staking in junior risk tranches, protected by the protocol reserve.

Unlocking Bitcoin’s Potential

Currently, only about 1% of Bitcoin is used in DeFi due to security concerns among holders. Muneeb Ali, CEO of Trust Machines, stresses Granite’s commitment to enhancing security, aiming to unlock the remaining 99% of dormant Bitcoin capital.

Conclusion

Granite seeks to establish itself as a secure option for Bitcoin users to engage in DeFi without risking collateral. With its commitment to transparency and user protection, Granite supports its users in accessing the value of their BTC safely.

For more information, visit Granite’s website.

About Granite

Granite is the first Bitcoin DeFi liquidity protocol, setting new standards for user-centric financial services, backed by the power of Bitcoin L2s.

Contact Information

Communications Partner
Jayson Lynn
jayson@trustmachines.co

This article was originally published on Chainwire.