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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, immediately introduced its launch. Incubated by Trust Machines, Granite represents a big evolution within the DeFi panorama, setting new requirements for transparency and user-centric monetary companies – all backed by the facility of Bitcoin L2s.
Granite permits BTC customers to entry DeFi with out centralized custodians by leveraging Stacks’ recently-launched Nakamoto improve and sBTC Bitcoin bridge. The Nakamoto improve elevated Stacks’ block velocity 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 any 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 method.”
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 that 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 can lead to the lack of debtors’ collateral. Granite as an alternative makes use of “comfortable liquidations” which liquidate solely to the purpose of solvency, permitting overextended debtors the chance 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, and all LPs are nonetheless protected by the protocol reserve as a primary line of protection.
Regardless of being essentially the most capitalized crypto asset, most bitcoin sits dormant and unproductive, unused by its holders. Different blockchains display a stark distinction, the place their native cryptocurrency (such as ETH) is actively deployed to validators (staking) and in DeFi protocols as collateral or liquidity pairs. As a decentralized non-custodial protocol, Granite brings transparency to lending and borrowing that sometimes has not been seen on the Bitcoin blockchain, aiming to reverse this development.
“Presently, solely about 1% of bitcoin is utilized in DeFi, largely as a result of Bitcoin customers need to be certain that their BTC is safe first and foremost,” mentioned Muneeb Ali, CEO and Co-Founding father of Trust Machines. “Granite’s security-oriented method 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 essentially the most precious 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 please go to http://www.granite.world
About Granite
Granite is a first-of-its variety Bitcoin DeFi liquidity protocol empowering customers with unprecedented safety and management over their Bitcoin property, Granite represents the numerous evolution within the DeFi panorama, with a mission of setting new requirements for transparency and user-centric monetary companies – all backed by the facility of Bitcoin L2s.
Contact
Communications Companion
Jayson Lynn
[email protected]