Cayman Islands, Cayman Islands, 12 Sep 2024, Chainwire
The primary of its variety DeFi liquidity protocol with a give attention to redefining belief and safety for DeFi
Granite, a pioneering DeFi liquidity protocol that provides customers unprecedented safety and management over their Bitcoin property, introduced right now its launch. Incubated by Belief Machines, Granite represents a serious evolution within the DeFi panorama, setting new requirements for transparency and user-centric monetary providers – all powered by the facility of Bitcoin L2s.
Granite permits BTC customers to entry DeFi with out centralized directors by leveraging Stacks' just lately launched Nakamoto improve and the sBTC Bitcoin bridge. Nakamoto's improve elevated Stacks' block velocity by 100x whereas sustaining the distinctive proof-of-transfer (PoX) consensus mechanism and Bitcoin finality. sBTC is an open supply Bitcoin bridge secured and managed by an open community of Stacks validators by way of a threshold signature script on the Bitcoin blockchain, enabling the permissionless and decentralized use of BTC in DeFi. Collectively, these upgrades will pave the best way for Bitcoin DeFi.
“There isn’t a safe manner to make use of BTC in DeFi right now,” mentioned Blaize Wallace, a founding contributor to Granite. “Protocols select to maximise returns at the price of counterparty and protocol danger. Granite takes the other strategy.”
Granite introduces a borrower-centric DeFi liquidity mannequin that maximizes asset security, minimizes liquidation danger, and permits customers to customise their danger publicity.
- No rehypothecation: by by no means lending debtors' collateral and having just one loanable asset out there, Granite eliminates the prevailing DeFi “pooled danger” mannequin that exposes all customers to the draw back of the group's riskiest property.
- Liquidation till solvency: DeFi protocols sometimes liquidate 50-100% of positions, which may result in debtors shedding collateral. Granite as an alternative makes use of “gentle liquidations,” which liquidate solely to the purpose of solvency, permitting overburdened debtors to climate downturns with minimal losses.
- Offline place monitoring: push notifications that monitor account standing and rates of interest permit debtors to calm down and obtain related account alerts as an alternative of being glued to their screens.
- Cut up LP Positions: LPs can stake their positions and enter a junior danger tranche that may earn larger rewards, adjusting their danger profile, and all LPs are nonetheless protected by a protocol buffer as a primary line of protection.
Regardless of being probably the most capitalized crypto-asset, most bitcoins lie idle and unproductive, unused by their holders. Different blockchains show a stark distinction, the place their native cryptocurrency (like ETH) is actively deployed in validators (staking) and DeFi protocols as collateral or liquidity pairs. As a decentralized, non-custodial protocol, Granite brings lending and borrowing transparency not sometimes discovered on the Bitcoin blockchain in an effort to reverse this development.
“At present, solely about 1% of Bitcoin is utilized in DeFi, primarily as a result of Bitcoin customers wish to be certain that their BTC is secure within the first place,” mentioned Muneeb Ali, CEO and co-founder of Belief Machines. “Granite's security-oriented strategy creates a chance to start unlocking the remaining 99% of BTC capital. It’s the solely liquidity protocol I’d think about using with my BTC.”
“Bitcoin is probably the most priceless asset you’ll ever personal,” added Wallace. “Don't danger your bundle to centralized packaging or predatory liquidation schemes. Granit helps you entry the worth in your BTC as securely as attainable. By no means promote.“
For extra details about Granite, readers can go to http://www.granite.world
About GraniteGranite is a first-of-its-kind Bitcoin DeFi liquidity protocol that provides customers unprecedented safety and management over their Bitcoin property, Granite represents a serious evolution within the DeFi panorama with a mission to set new requirements for transparency and user-centric finance. providers – all backed by the facility of Bitcoin L2s.
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ContactCommunication associateJason Lynnjayson@trustmachines.co
This text was initially revealed on Chainwire
