Granite Protocol has been listed on Borrow on Bitcoin, a platform for Bitcoin DeFi on Stacks. Users can now deposit sBTC collateral and borrow USDCx through Granite Protocol, with a variable borrow rate of 1.66% APR. The listing marks another step toward practical Bitcoin DeFi infrastructure, though the product remains unavailable in the United States.
How the lending works
Granite Protocol uses isolated pools — each lending market is separate, so problems in one don't spill into another. It also employs soft liquidations, meaning positions are gradually unwound rather than abruptly seized. And the protocol doesn't rehypothecate user collateral; your sBTC stays put unless you borrow against it and get liquidated. That structure is designed to reduce systemic risk, a common pain point in DeFi lending.
Bitcoin DeFi has long been a promise more than a reality. Stacks, a Bitcoin layer for smart contracts, has been chipping away at that. Granite Protocol's listing on Borrow on Bitcoin gives sBTC holders a way to borrow stablecoins without leaving the Bitcoin ecosystem. The 1.66% APR is competitive, but the real story is that the infrastructure is becoming more practical. It's not mainstream yet — far from it — but the pieces are starting to fit together.
Availability and restrictions
The product is not available in the United States. That's a familiar caveat for many DeFi protocols navigating regulatory uncertainty. For users outside the US, though, it's a new option to put sBTC to work. Whether it attracts significant volume is an open question. For now, the infrastructure is slowly maturing.
