Granite Protocol Brings New Lending Options to Bitcoin DeFi

Granite Protocol has officially joined the Borrow on Bitcoin platform, providing a fresh route for users to deposit sBTC collateral and borrow USDCx. Operating on the Stacks network, the protocol highlights a variable borrow rate of 1.66 percent APR. It also incorporates specific security features, including isolated pools and soft liquidation mechanics, while explicitly prohibiting the rehypothecation of user collateral.

This development is part of a growing trend where Bitcoin DeFi is shifting from theoretical goals to practical, comparable products. Instead of broad promises, the space is starting to focus on standard DeFi questions regarding risk, collateral terms, and liquidity. The inclusion of soft liquidations and a clear stance against rehypothecation are specific design choices aimed at addressing concerns around user experience and custody risks.

It is important to note that this product is currently unavailable to users in the United States. While this listing indicates steady progress in building infrastructure, it is not an indicator of immediate mass adoption. Investors should keep in mind that borrow rates are subject to change based on market conditions, and smart contract risks remain present in any protocol. For now, the move serves as another step in making Bitcoin financial tools easier to evaluate and use.