Lending · Review
ActiveGranite Review 2026: Borrowing Against sBTC on Stacks
Granite is a lending protocol on Stacks that lets users borrow stablecoins against sBTC collateral without rehypothecation. It is a young, small-TVL protocol incubated by Trust Machines, so check the audits and caps before depositing.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.7/10
Good
Our verdict on Granite
6.7/10Granite suits Bitcoin holders on Stacks who want to borrow stablecoins against sBTC without having their collateral rehypothecated, and stablecoin holders who want lending yield from that pool. Its main strength is a clear, focused design with isolated markets, withdrawal caps and a Pyth oracle. The main caveat is size and dependency risk: TVL is small, and everything relies on Stacks and the sBTC bridge. Read the audits and caps first, and borrow with a wide safety margin.
Score breakdown
How Granite scores
- Security
- 6.5/10
- Ease of use
- 6.5/10
- Fees
- n/a
- Features
- 6.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Granite?
Granite is a Bitcoin Liquidity Protocol on the Stacks blockchain. It lets borrowers take stablecoin loans using sBTC as collateral, and lets liquidity providers earn yield by supplying stablecoins. The team describes it as a non-custodial way to borrow against Bitcoin.
DefiLlama categorises Granite as lending, lists it only on Stacks, and shows about 6.8 million USD in TVL with a 0.5 percent seven-day decline. It has been listed since June 2025, and DefiLlama shows two audits and no token. The project is incubated by Trust Machines.
The main selling point is the absence of rehypothecation: collateral is not reused. The docs also describe isolated markets, withdrawal caps, a Pyth oracle and guardians. Some public reporting mentions a GRN token price, but these do not appear to relate to this protocol.
How Granite works
Granite is a pool-based lending market. Liquidity providers deposit stablecoins into a pool. Borrowers lock sBTC, a Bitcoin-backed asset on Stacks, as collateral and borrow stablecoins from that pool.
Loans have no fixed term. The borrower must keep the loan-to-value ratio healthy. If it falls too low, part of the collateral is liquidated to bring the account back to a safe level. Prices come from the Pyth oracle.
The protocol says collateral is not rehypothecated, meaning it is not reused or lent out elsewhere. It also uses isolated markets and withdrawal caps as safety mechanisms, and the docs list governance and guardians.
8 features
Key features
01
sBTC-backed stablecoin loans
Borrowers deposit sBTC and take stablecoin loans, with no exposure to counterparty risk described by the protocol.
02
Open-ended credit lines
Loans act as lines of credit with no set term or repayment schedule, provided the account stays healthy.
03
Stablecoin yield for lenders
Liquidity providers supply stablecoins to a pool that is lent to borrowers, earning interest.
04
No rehypothecation
The docs state collateral is not rehypothecated, reducing the risk of it being reused elsewhere.
05
Isolated markets
The docs list isolated markets, so each market has its own parameters and risk.
06
Pyth oracle pricing
Price feeds come from the Pyth oracle for each market.
07
Withdrawal caps
The docs describe withdrawal caps listed per market to limit damage from security threats.
08
Partial liquidations
Partial liquidation restores an account's solvency when the LTV falls too low.
Pros and cons
What we like
- Clear focus on borrowing stablecoins against Bitcoin-linked collateral (sBTC)
- Documentation states no rehypothecation of collateral
- Isolated markets and withdrawal caps limit contagion
- Uses the Pyth oracle for price feeds
- DefiLlama lists two audits and the docs include a bug bounty section
- Open-ended loans with no repayment schedule
Watch out for
- TVL of about 6.8 million USD is small compared with major lending markets, so liquidity can be thin
- Depends on the Stacks chain and the sBTC bridge, which add their own technical risk
- Only BTC-linked collateral (sBTC) is described, which limits who can borrow
- Liquidation can occur if the loan-to-value ratio worsens, and a portion of collateral is sold
- Relies on the Pyth oracle for prices, so oracle problems would affect markets
- Audit reports and bug bounty terms are not detailed, so readers must check them
Granite fees
Fee levels are not stated. The docs have an Interest Rates section, where borrow and supply rates are explained, and the app would show live rates per market.
Borrowers should expect to pay variable interest plus network transaction fees on Stacks. Exact protocol fees, liquidation penalties and any reserve cut should be confirmed in the documentation and the app before use.
Is Granite safe?
DefiLlama lists two audits for Granite, and the documentation has pages on audits, a bug bounty, contracts, governance and guardians. The project does not give auditor names or findings, so readers should read the reports themselves.
Risks include smart-contract bugs, oracle failure, the sBTC bridge and Stacks network risk, and liquidation if collateral value drops. Withdrawal caps are meant to protect users during security threats but can also limit how quickly lenders exit. The protocol is relatively new and holds a modest TVL, so treat deposits as high risk and size positions accordingly.
7 steps
How to get started with Granite
- 1
Set up a Stacks-compatible wallet, following the wallet setup guide in the docs.
- 2
Obtain sBTC (to borrow) or a supported stablecoin such as USDCx or aeUSDC (to lend).
- 3
Open the Granite app and use Connect Wallet at the top right.
- 4
Read the market page for rates, loan-to-value limits and withdrawal caps.
- 5
Borrowers deposit sBTC collateral and borrow conservatively to leave a buffer above liquidation.
- 6
Liquidity providers deposit stablecoins and monitor rates and caps.
- 7
Review the audits and contracts pages before committing meaningful funds.
Who Granite is for
Granite is for users already comfortable with Stacks wallets and sBTC who want stablecoin credit against Bitcoin, or who want to lend stablecoins in a specialised market. It is less suited to beginners or anyone who wants broad multi-asset collateral options.
Granite FAQs
What is Granite Protocol?
Granite is a Bitcoin Liquidity Protocol on the Stacks blockchain. Borrowers take stablecoin loans using sBTC as collateral, and liquidity providers earn yield by supplying stablecoins to the lending pool.
How do loans work on Granite?
Loans work like lines of credit with no set term or repayment schedule. You are not liquidated as long as your loan-to-value ratio stays healthy. If it falls too far, a portion of your collateral is liquidated to bring the account back to solvency.
Does Granite rehypothecate collateral?
Rehypothecation means a platform re-lends or reuses deposited collateral. Granite states that it eliminates this risk, so a borrower's collateral is not lent out to others.
Which oracle does Granite use?
The documentation says Granite uses the Pyth price oracle to provide price feeds for each market. Pyth is a widely used oracle network.
Has Granite been audited?
Granite is listed by DefiLlama as incubated by Trust Machines, and DefiLlama lists two audits. The documentation has an Audits and Bug Bounty section. Read the reports directly, since a listed audit does not remove smart-contract risk.
Does Granite have a token?
No. DefiLlama shows no token for Granite. Public reporting mentions a GRN price listing, but that is not tied to this protocol, so treat it with caution.
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How we checked
Sources
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