Granite Review: 2026 Bitcoin Loan Comparison
Market data verified Invalid Date · Verified daily
Granite is a Bitcoin DeFi protocol that lets you borrow stablecoins against your Bitcoin at among the lowest variable rates of any tracked onchain Bitcoin lending market. As of Invalid Date, Granite’s borrow rate is 1.65% variable APR. Granite runs 1 onchain market we track for borrowing stablecoins against sBTC, a decentralized 1:1 Bitcoin-backed asset, on the Stacks Bitcoin L2. It is a permissionless set of smart contracts with no application, no credit check, no custodian, and no rehypothecation of your collateral. Rates vary with pool utilization.
Your Granite loan
BTC $63,695 · liveYour loan purpose, wrapped-Bitcoin choice, and location are recorded to improve the options we surface. They don’t change Granite’s onchain terms, which are the same for every borrower.
Estimate only, at BTC $63,695. Self-custody · Confirm live terms on Granite.
Disclaimer. Every figure here, including the projected rate, is an estimate for general information, not a quote, an offer of credit, or financial advice. DeFi lending protocols are permissionless smart contracts, not regulated entities. Rates are variable and change continuously with pool utilization; the rate shown is a point-in-time snapshot. Your Bitcoin collateral is held on-chain — by the protocol's smart contracts, not a custodian — and can be liquidated automatically if your loan-to-value ratio crosses a liquidation threshold, without notice and without recourse. Smart contracts can contain bugs or be exploited. Some protocols rehypothecate deposited collateral. We are a publisher, not a DeFi protocol operator, broker, or investment adviser; nothing here is a recommendation to use any protocol. Verify all terms directly with each protocol before acting.
Granite is a premier Bitcoin DeFi protocol developed within Trust Machines, the product studio founded by Stacks creator Muneeb Ali. The platform was established on the core principle that Bitcoin is the ultimate collateral asset and that holders should never have to liquidate their BTC.
As an industry pioneer, Granite introduced borrower-centric functionalities such as a liquidate-to-maintenance model to preserve solvency, automated borrower notifications, an open governance framework, and a default policy of zero rehypothecation. Every liquidation is fully transparent, recorded on-chain, and accessible via public dashboards. Security remains paramount, with rigorous audits for each new feature and a dedicated white-hat bug bounty program.
Granite’s future updates include the rollout of new borrowing markets, unique incentive structures for liquidity providers and borrowers, and fixed-term markets. These fixed-term markets will integrate directly with the Stacks Bitcoin Staking architecture, unlocking Bitcoin’s utility without requiring wrapping or bridging mechanisms.
About Granite
Granite is a Bitcoin liquidity protocol incubated by Trust Machines and built on the Stacks Bitcoin L2. It operates a single isolated market where you post sBTC as collateral and borrow USDCx stablecoins, with no repayment schedule and no margin calls. Your collateral is never lent to other borrowers, and if your position reaches the liquidation threshold, only the minimum amount needed to restore solvency is sold.
Stacks is the Bitcoin Layer 2 that Granite is built on. Every Stacks block is anchored to a Bitcoin block, so transactions inherit Bitcoin’s proof-of-work finality once confirmed. Stacks miners compete for block production by committing real BTC, tying the chain’s security directly to Bitcoin’s hashpower rather than a separate validator set. Smart contracts are written in Clarity, a language designed to be fully auditable before deployment.
Granite markets
Every Granite market we track, sorted by lowest variable borrow rate. Rates are variable point-in-time snapshots.
1 market
Collateral & rehypothecation
Accepted collateral: sBTC, a decentralized, non-custodial 1:1 Bitcoin-backed asset on the Stacks blockchain. Unlike centralized wrapped Bitcoin tokens such as wBTC, which require trusting a custodian, sBTC is secured by an open network of Stacks validators via a threshold signature script on the Bitcoin blockchain, backed 1:1 by BTC held on-chain rather than in a company’s vault, and managed through Stacks’ proof-of-transfer (PoX) consensus.
Rehypothecation: No. Granite never lends out or reuses deposited collateral. Your sBTC sits in the protocol’s isolated smart-contract market and is not accessible to other borrowers. This eliminates the pooled-risk problem common in most DeFi lending protocols, where all users are exposed to the volatility and insolvency risk of the riskiest asset in a shared pool.
Liquidation
Granite eliminates traditional margin calls. If your LTV crosses the liquidation threshold due to falling BTC prices or accrued interest, the protocol opens your position to automated soft liquidation by third-party liquidators. While most DeFi lending platforms allow liquidators to close 50–100% of a borrower’s position in a single event, which can catastrophically wipe out collateral during temporary market dips, Granite restricts each liquidation to only what is necessary to restore solvency. Liquidators cannot take more than the exact amount required to bring your account back below the liquidation LTV, protecting your assets from unnecessary liquidations.
Granite also provides offline position monitoring via configurable Telegram push notifications, alerting you when your LTV approaches the liquidation threshold so you can add collateral or repay before a liquidation is triggered.
Audits & security
Granite is routinely audited whenever a new feature is added. All reports are publicly available in Granite’s GitHub audits repository and Documentation site. The most recent audit was in June 2026. Granite also runs a comprehensive bug-bounty program with Immunefi, with rewards up to $100,000. An audit reduces but does not remove smart-contract risk — treat audit status as one input, not a guarantee, and verify the current posture on the protocol directly.
Supported wallets
You interact with Granite from a self-custody wallet you control on the Stacks network; we never ask you to connect a wallet here.
How Granite compares
| Protocol | Lowest rate | Max LTV | Structure | Rehypothecation |
|---|---|---|---|---|
| Granite | 1.65% | 50% | Isolated | No |
| Fluid | 6.51% | 85% | Isolated | No |
| Morpho | 3.21% | 86% | Isolated | No |
| Euler v2 | 3.60% | 84% | Configurable | Optional |
| Dolomite | 7.39% | 75% | Pooled | Yes |
| Kamino | 5.40% | 82% | Pooled | Yes |
| Compound v3 | 3.94% | 80% | Isolated | No |
| Aave v3 | 3.60% | 78% | Pooled | Yes |
| Benqi | 6.15% | 65% | Pooled | Yes |
| Zest Protocol | 2.14% | 60% | Configurable | Optional |
| Venus | 4.24% | 80% | Pooled | Yes |
Frequently asked
What is Granite Protocol?
Incubated by Trust Machines, Granite is a non-custodial Bitcoin DeFi lending protocol built on the Stacks Bitcoin L2. As of July 2026, it features one of the lowest variable borrow rates among tracked onchain Bitcoin lending markets. The protocol enables Bitcoin holders to borrow stablecoins against their BTC at a variable APR without selling their assets or undergoing credit checks. Furthermore, liquidity providers can earn yield by supplying stablecoins to the lending pool, which has successfully completed multiple independent security audits.
What are withdrawal caps on Granite?
Withdrawal caps limit the amount of any asset that can exit the protocol within a rolling 24-hour window. The cap applies separately to borrowing, collateral withdrawals, and LP withdrawals, covering every exit path. The limit refills linearly over the window rather than resetting at a fixed time, so regular users are not hard-frozen during high-activity periods. If a cap is hit, Granite Guardians are alerted in real time and can pause the protocol. Cap status is displayed in the app dashboard. The practical effect is that even a successful exploit can only drain a bounded percentage of capital before the system can respond.
How do soft liquidations work on Granite?
When a position's LTV crosses the liquidation threshold, Granite allows liquidators to repay only the minimum amount of debt needed to restore solvency. Unlike typical DeFi protocols, where liquidators can close 50 to 100% of a position, Granite limits the liquidated amount to roughly 2% of a near-threshold position, based on the protocol's documented example. Liquidators receive a 10% reward on the amount liquidated. The borrower retains the remaining collateral. Users can track their loan-to-value ratio via Telegram push notification alerts, enabling them to add collateral or settle balances before a liquidation gets triggered automatically.
How do I borrow against my Bitcoin with Granite?
Bridge your BTC to sBTC using the Stacks sBTC bridge. Then connect a compatible wallet (Leather or Xverse) at app.granite.world, deposit sBTC as collateral, and borrow stablecoins up to the protocol’s maximum LTV. There is no repayment schedule. You can hold the position as long as your LTV stays healthy.
Can I earn rewards or yield on Granite?
Yes. Liquidity providers earn yield by depositing USDCx into the lending pool. Interest paid by borrowers flows to LPs. LPs can also stake their position in Granite's Safety Module to act as a junior tranche, earning additional rewards in exchange for absorbing potential bad debt first.
Is the Granite market isolated or pooled?
Isolated. Granite’s market supports a single collateral asset (sBTC) and a single borrowable stablecoin. Deposited collateral is never rehypothecated or shared across pools. This eliminates the cross-margin pool risk in most DeFi protocols, where all users are exposed to the riskiest asset in a shared collateral pool.
How are Granite’s borrowing rates set?
Granite borrow rates are variable, determined algorithmically by pool utilization. The interest rate model uses a base rate, a primary slope, a kink point, and a post-kink slope, with parameters set by Granite Governance. Rates rise as utilization increases above the kink. The live rate is always at app.granite.world/market.
Which network does Granite run on?
Built on Stacks, Granite leverages a Bitcoin Layer 2 blockchain that achieves finality via proof-of-transfer (PoX) consensus and settles directly to Bitcoin. Granite selected Stacks because it stands as the most established in-production, Bitcoin-native DeFi chain, and because its accepted collateral, sBTC, is a native Stacks asset. The network ensures security by anchoring every Stacks block to a Bitcoin block, allowing transactions to inherit Bitcoin’s proof-of-work finality. Furthermore, Stacks miners must commit real BTC to compete for block production, directly linking the platform’s security to Bitcoin’s hashpower. For contract execution, Granite relies on Clarity, a smart contract language engineered to be completely auditable prior to deployment.
Is Granite custodial?
No. Granite is a permissionless set of smart contracts on Stacks. Your collateral is held onchain by the protocol’s contracts, not by a company. No application or credit check is required. There is no counterparty to call if something goes wrong, and smart-contract risk is yours to assess.
DeFi lending protocols are permissionless smart contracts, not regulated entities. Rates are variable and change continuously with pool utilization; the rate shown is a point-in-time snapshot. Your Bitcoin collateral is held on-chain — by the protocol's smart contracts, not a custodian — and can be liquidated automatically if your loan-to-value ratio crosses a liquidation threshold, without notice and without recourse. Smart contracts can contain bugs or be exploited. Some protocols rehypothecate deposited collateral. We are a publisher, not a DeFi protocol operator, broker, or investment adviser; nothing here is a recommendation to use any protocol. Verify all terms directly with each protocol before acting.