> ## Documentation Index
> Fetch the complete documentation index at: https://natureloved-staxiq-48.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Granite

> Borrow stablecoins against your Bitcoin collateral on Stacks

## Overview

**Granite** is a lending protocol on Stacks that enables you to borrow stablecoins against your Bitcoin collateral. By depositing sBTC, you can access dollar-denominated liquidity without selling your Bitcoin, while earning 7.8% APY on deposited assets.

<CardGroup cols={2}>
  <Card title="APY" icon="percent">
    **7.8%** annual percentage yield
  </Card>

  <Card title="TVL" icon="vault">
    **\$18.6M** total value locked
  </Card>

  <Card title="Asset" icon="coins">
    **sBTC** (Bitcoin on Stacks)
  </Card>

  <Card title="Risk Level" icon="shield-check">
    **Low** risk rating
  </Card>
</CardGroup>

## Protocol Type

**Lending** — Granite specializes in collateralized lending, allowing you to borrow stablecoins against Bitcoin.

## Key Features

### Bitcoin-Collateralized Borrowing

Deposit sBTC as collateral and borrow stablecoins without selling your Bitcoin holdings.

### Earn While Borrowing

Your sBTC collateral earns 7.8% APY even while being used to back borrowed stablecoins.

### Maintain Bitcoin Exposure

Access liquidity without giving up potential Bitcoin appreciation.

### Transparent Rates

All interest rates and collateralization ratios visible on-chain.

### Low Risk Profile

Conservative loan-to-value ratios and robust liquidation mechanisms protect both lenders and borrowers.

## Supported Assets

* **sBTC** — Stacks-wrapped Bitcoin (collateral)
* **Stablecoins** — Dollar-denominated borrowable assets

## How to Use Granite via Staxiq

<Steps>
  <Step title="Connect Your Wallet">
    Connect your Stacks wallet containing sBTC to Staxiq
  </Step>

  <Step title="Navigate to Granite">
    Select Granite from the protocols dashboard
  </Step>

  <Step title="Choose Action">
    Decide between lending sBTC (earn APY) or borrowing against collateral
  </Step>

  <Step title="Deposit sBTC">
    For lending: Deposit sBTC to start earning. For borrowing: Deposit collateral
  </Step>

  <Step title="Borrow Stablecoins (Optional)">
    If borrowing, select amount based on available collateral
  </Step>

  <Step title="Manage Position">
    Monitor collateralization ratio and earn 7.8% APY on deposits
  </Step>
</Steps>

## Risk Assessment

### Risk Level: Low

Granite is rated **Low Risk** due to:

* **Conservative LTV ratios** — Protects against Bitcoin volatility
* **Robust liquidation** — Automated systems protect lender capital
* **Audited contracts** — Regular security reviews
* **Proven TVL** — \$18.6M demonstrates market confidence
* **Transparent operations** — All parameters visible on-chain
* **Bitcoin-focused** — Purpose-built for sBTC collateral

<Tip>
  Granite is ideal for Bitcoin holders who need liquidity but don't want to sell their BTC holdings.
</Tip>

## Performance Metrics

| Metric             | Value       |
| ------------------ | ----------- |
| Current APY        | 7.8%        |
| Total Value Locked | \$18.6M     |
| Primary Asset      | sBTC        |
| Risk Rating        | Low         |
| Protocol Type      | Lending     |
| Borrowable Assets  | Stablecoins |

## External Resources

<Card title="Visit Granite" icon="arrow-up-right-from-square" href="https://granite.finance">
  Access the official Granite platform for direct lending and borrowing
</Card>

## Why Choose Granite?

* **Keep Bitcoin exposure** — Borrow without selling BTC
* **Earn while borrowing** — 7.8% APY on collateral
* **Low risk** — Conservative approach to lending
* **Stablecoin access** — Get dollar liquidity instantly
* **Transparent** — Clear rates and terms
* **Proven protocol** — \$18.6M TVL demonstrates trust

## Use Cases

### For Bitcoin Holders

* Access liquidity without selling Bitcoin
* Earn yield on sBTC holdings
* Borrow stablecoins for opportunities while maintaining BTC exposure

### For Lenders

* Earn 7.8% APY on sBTC deposits
* Conservative risk profile
* Protected by collateralization mechanisms

### For Traders

* Use borrowed stablecoins for trading
* Leverage Bitcoin position without CEX
* Maintain long-term BTC holdings while accessing capital

## How It Works

### Lending

1. Deposit sBTC into Granite
2. Earn 7.8% APY automatically
3. Withdraw anytime (subject to utilization)

### Borrowing

1. Deposit sBTC as collateral
2. Borrow stablecoins up to maximum LTV
3. Pay interest on borrowed amount
4. Maintain safe collateralization ratio
5. Repay loan to reclaim sBTC

## Collateralization

* **Minimum collateral ratio**: Conservative to protect against Bitcoin volatility
* **Liquidation threshold**: Automated liquidations protect lenders
* **Over-collateralization**: Required to account for price fluctuations

<Warning>
  If borrowing, monitor your collateralization ratio carefully. Bitcoin price drops can trigger liquidation if your position becomes under-collateralized.
</Warning>

## Best Practices

### For Lenders

* Granite offers steady, low-risk yields on sBTC
* Consider it for conservative allocation of Bitcoin holdings
* Monitor utilization rates (high utilization may delay withdrawals)

### For Borrowers

* Maintain healthy collateral ratios (well above liquidation threshold)
* Set up alerts for collateral ratio changes
* Have a plan to add collateral if Bitcoin price drops
* Understand interest costs before borrowing

## Comparison with Other Lending Protocols

| Feature | Granite              | Zest            |
| ------- | -------------------- | --------------- |
| APY     | 7.8%                 | 8.2%            |
| TVL     | \$18.6M              | \$48.2M         |
| Focus   | Stablecoin borrowing | General lending |
| Risk    | Low                  | Low             |

Granite's stablecoin focus makes it ideal for accessing dollar liquidity, while Zest may offer slightly higher yields for pure lending.

<Tip>
  Use Granite when you need liquidity but want to maintain Bitcoin exposure. Use Zest for pure yield farming on sBTC.
</Tip>