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Granite world

The Granite Protocol is an autonomous Bitcoin liquidity protocol where users can participate as liquidity providers, borrowers, or liquidators.

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The Granite Protocol is an autonomous Bitcoin liquidity protocol where users can participate as liquidity providers, borrowers, or liquidators.

The protocol allows borrowers to take stablecoin loans using Bitcoin as collateral, without exposure to counterparty or rehypothecation risk. Liquidity providers can earn yield on stablecoins by providing liquidity to the pool, which is then lent to borrowers.

Loans in Granite are best thought of as lines of credit, without set terms or repayment schedules. As long as the borrower maintains an adequate loan-to-value ratio (LTV), keeping their account in good health, they are not subject to liquidation. If a borrower’s LTV falls too low, a portion of their capital will be liquidated to bring their account back to solvency.

Granite enables BTC users to access DeFi without centralized custodians by leveraging Stacks’ soon-to-be-launched Nakamoto upgrade and sBTC Bitcoin bridge.

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