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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 immediately. Incubated by Belief 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 permits 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 by way of 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.
“At present, there isn’t a protected manner to make use of BTC in DeFi,” mentioned Blaize Wallace, Founding Contributor to Granite. “Protocols have determined to maximise returns at the price of counterparty and protocol threat. Granite takes the alternative strategy.”
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, which 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 an alternative makes use of “gentle liquidations,” which liquidate solely to the purpose of solvency, permitting overextended debtors to climate downturns with minimal losses.
Offline Place Monitoring
push notifications that monitor account well being and rates of interest enable debtors to loosen up 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 threat tranche that will obtain larger rewards, tailoring their threat 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 exhibit a stark distinction, the place their native cryptocurrency (equivalent to 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 usually not seen on the Bitcoin blockchain, aiming to reverse this development.
“At the moment, solely about 1% of Bitcoin is utilized in DeFi, largely as a result of Bitcoin customers need to be sure that their BTC is safe at the start,” mentioned Muneeb Ali, CEO and Co-Founding father of Belief Machines. “Granite’s security-oriented strategy creates a chance to start unlocking the remaining 99% of BTC capital. It’s the one liquidity protocol I might think about using with my BTC.”
“Bitcoin is probably the most beneficial asset you’ll ever personal,” added Wallace. “Don’t threat your stack to centralized wrappers or predatory liquidation schemes. Granite helps you entry the worth in your BTC as safely as potential. By no means promote.”
For extra details about Granite, readers can go to their web site.
About Granite
Granite is a first-of-its-kind Bitcoin DeFi liquidity protocol that empowers customers with unprecedented safety and management over their Bitcoin property. It represents a major 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.
Web site | Twitter
Communications Accomplice
Jayson Lynn
jayson@trustmachines.co
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