Stacks sees Bitcoin DeFi growth as Granite Protocol lands on Borrow on Bitcoin

Granite Protocol, a Bitcoin liquidity platform built on the Stacks blockchain, is now listed on Borrow on Bitcoin, a rate comparison platform operated by Sypher Capital. The listing, which went live on July 29, puts Granite’s lending terms directly alongside centralized and decentralized competitors, and the numbers tell an interesting story. Granite’s variable borrow rate sits at 1.66% APR. For context, centralized finance lending rates currently range from 7.25% to 18.9% APR, while EVM-based DeFi markets average between 3.57% and 8.02% APR. How the protocol actually works Granite lets users deposit sBTC, the Stacks network’s 1:1 Bitcoin-backed asset, as collateral to borrow USDCx. Users can bridge their BTC to sBTC through the official Stacks bridge, then put that sBTC to work as collateral. Rather than pooling all user funds together, Granite uses isolated liquidity pools. Each market operates independently, so a problem in one pool doesn’t cascade into others. There’s also no rehypothecation risk. Granite simply doesn’t lend out collateral that depositors have provided. The protocol also employs soft liquidation mechanics, a more forgiving approach to handling undercollateraliz...