Granite Launches as First-of-its-Kind Bitcoin DeFi Liquidity Protocol Prioritizing Security and Trust
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, introduced its launch in the present day. Incubated by Trust Machines, Granite represents a major 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’ lately launched Nakamoto improve and sBTC Bitcoin bridge. The Nakamoto improve elevated Stacks’ block velocity to 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 best way 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 danger, and permits customers to tailor their danger 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, which exposes all customers to the draw back of the riskiest pool property.
Liquidation to Solvency
DeFi protocols sometimes liquidate 50-100% of a place, which may end up in the lack of debtors’ collateral. Granite as an alternative makes use of “soft liquidations,” which liquidate solely to the purpose of solvency, permitting overextended debtors 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 an alternative of staying glued to their screens.
Tranched LP Positions
LPs can stake their positions to enter a junior danger tranche which will obtain increased rewards, tailoring their danger profile. All LPs are nonetheless protected by the protocol reserve as a primary line of protection.
Regardless of being probably the most capitalized crypto asset, most bitcoin sits dormant and unproductive, unused by its holders. Different blockchains reveal a stark distinction, the place their native cryptocurrency (such as ETH) is actively deployed to validators (staking) and DeFi protocols as collateral or liquidity pairs. As a decentralized non-custodial protocol, Granite brings transparency to lending and borrowing sometimes not seen on the Bitcoin blockchain, aiming to reverse this development.
“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 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,” 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 more information about Granite, readers can visit their website.
About Granite
Granite is a first-of-its-kind Bitcoin DeFi liquidity protocol that empowers users with unprecedented security and control over their Bitcoin assets. It represents a significant evolution in the DeFi landscape, with a mission of setting new standards for transparency and user-centric financial services—all backed by the power of Bitcoin L2s.
Communications Companion
Jayson Lynn
jayson@trustmachines.co
