Granite Wrapped: A Year of Building Bitcoin DeFi

As the year comes to a close, we want to pause and reflect on what Granite has built in our first year of being live.

Granite started with a simple but demanding goal: give Bitcoin holders a way to access liquidity without giving up custody, transparency, or control. Over the past year, that goal became a live protocol — used by real people, securing real Bitcoin, and operating through real market volatility.

Granite Wrapped is a look at what we shipped, why we built it this way, and what we’re proud to have delivered so far.

Executive Metrics Summary

In under one year since launch, Granite has grown into one of the leading Bitcoin-native lending protocols on Stacks, with 178 sBTC supplied as collateral and over $11 million in available liquidity. Growth has been driven by organic borrowing demand rather than short-term incentive programs, alongside a consistent focus on safety, transparency, and borrower-friendly design.

Borrowing Against Bitcoin, Built the Right Way

Granite allows users to borrow stablecoins against Bitcoin through non-custodial smart contracts. Collateral remains on-chain, positions are managed transparently, and risk parameters are explicit and verifiable. 

There are no custodians holding funds. No opaque balance sheets. No hidden mechanics. What users see on-chain is exactly how the protocol operates.

This level of predictability is intentional — especially during periods of volatility, when leverage exposes weak designs. Granite was built to behave clearly and consistently when it matters most. Granite is live today and open to anyone looking to unlock liquidity from their Bitcoin without compromising on self-custody.

Built on Stacks, Anchored to Bitcoin

Granite is built on Stacks, the leading Bitcoin Layer 2, enabling smart contracts that settle to Bitcoin. This architecture makes Granite programmable while remaining firmly anchored to Bitcoin’s security model.

By building on Stacks, Granite stays Bitcoin-native while supporting the functionality required for lending markets, liquidations, and risk management. The result is infrastructure that feels purpose-built for Bitcoiners — not retrofitted from elsewhere.

Risk Controls Designed for Real Markets

Granite’s most important features are often the ones you hope to never notice — until markets move fast.

This year, Granite shipped withdrawal caps to help protect protocol liquidity during periods of stress, reducing the risk of sudden, destabilizing outflows. Rather than reacting after something breaks, Granite builds guardrails directly into the system.

Granite also introduced community liquidations, bringing transparency and better incentive alignment to one of the most critical parts of a lending protocol.

Most notably, Granite pioneered soft liquidations — a borrower-first approach that gradually reduces exposure instead of triggering immediate, all-or-nothing liquidations. This design gives users more room to manage risk and leads to fewer unnecessary losses during sharp market moves.

These mechanisms weren’t added for optics. They were added because real markets demand real risk management.

Transparency Without Rehypothecation

Bitcoin supplied to Granite is not rehypothecated. Assets are not reused, re-lent, or deployed elsewhere. This is a deliberate design choice. It means Granite grows responsibly, without hidden leverage or off-chain risk. Users can independently verify how assets are handled at any time — no trust required.

Security and Monitoring

Security has been a priority from day one. Granite has completed multiple audits, runs a live bug bounty program, and includes protocol-level safeguards such as timelocks on sensitive functions.

Granite also became the first DeFi protocol on Stacks to introduce Telegram alerts for position monitoring. These alerts help users stay ahead of risk, monitor health factors in real time, and act early rather than react late.

Taken together, these safeguards reflect a simple belief: strong protocols should help users avoid failure, not just survive it.

Looking Ahead to 2026 Q1

Granite’s roadmap continues to expand functionality while staying true to the principles that shaped its first year.

Coming next are USDCx markets with Circle, the ability to stake positions, options to repay loans directly with collateral, and responsibly designed Bitcoin leverage.

Each feature is being built with the same mindset that guided Granite’s launch: move carefully, stay transparent, and build systems that can hold up across market cycles.

Using Granite

Granite is live today and available to users who want Bitcoin-backed liquidity without custody risk — or transparent yield opportunities built directly on Bitcoin.

• Access the app: https://app.granite.world
• Read protocol documentation: https://granite.world
• Follow updates: https://x.com/GraniteBTC

Granite Wrapped marks the close of the protocol’s first year in production — and the foundation for continued iteration.