💡Spotlight: Granite

Granite is a Bitcoin liquidity protocol that enables non-custodial borrowing against BTC and provides on-chain stablecoin lending markets. Built on the Stacks blockchain, Granite focuses on minimizing counterparty and rehypothecation risk while delivering liquidity and yield tools for BTC holders and liquidity providers.

🛠️ Key Features

• Isolated single-asset pools: Granite uses single-asset lending pools so liquidity for each market is isolated. That limits cross-market contagion and simplifies risk calculations for lenders and borrowers.

• Non-custodial borrowing against BTC: Borrowers can take stablecoin loans collateralized by BTC without handing custody to a third party.

• Soft liquidations and community liquidations: Granite emphasizes borrower-friendly liquidation mechanics. Its "soft liquidation" model and community liquidation mechanisms aim to reduce forced selling pressure.

• Oracle and price feeds: Granite has integrated reliable price oracles, including Pyth, to improve price discovery and minimize oracle risk for borrowing and liquidation logic.

• Audits and security posture: Granite runs a public bug bounty program and has pursued third-party security reviews. The project highlights audits and an active bounty program as central to its security model.

Technical snapshot

• Platform: Stacks (Bitcoin-anchored execution). Granite leverages Stacks to provide BTC-collateralized markets while preserving links to Bitcoin's base layer.

• Protocol mechanics: Isolated markets, utilization-based interest rates, and soft liquidation paths minimize systemic risk and reduce unnecessary on-chain sell pressure.

• Developer surface: Documentation and SDKs are publicly available; the codebase is open for inspection on Granite's GitHub.

Why it matters

Large amounts of BTC remain illiquid for on-chain DeFi because existing solutions often require custody transfers or introduce rehypothecation risk. Granite provides a non-custodial alternative that preserves collateral control while enabling stablecoin liquidity and yield for BTC holders. Its borrower-centric liquidation rules and isolated pool design reduce tail risk for lenders and borrowers alike.

The road ahead

Granite's near-term priorities include expanding liquidity, refining liquidation mechanics, broadening oracle coverage, and deepening integrations across Stacks and broader Bitcoin L2s. Continued audits, community monitoring, and careful scaling will be critical as Bitcoin-backed lending grows.

🔗 Learn more: Granite.world