Granite Protocol is now available on Borrow on Bitcoin, giving users another way to lend using Bitcoin-backed collateral without…
Frequently Asked Questions
Here is a list of FAQs based on the topic Granite Protocols listing and the state of Bitcoin DeFi on Stacks
General Basics
1 What exactly is Granite Protocol
Granite Protocol is a DeFi lending platform built on the Stacks blockchain It lets you use your Bitcoin as collateral to borrow a stablecoin called Granite or to earn yield by supplying assets
2 Im new to crypto What does Bitcoin DeFi mean
It means using Bitcointhe original most secure cryptocurrencyin financial applications like lending borrowing and earning interest without selling your Bitcoin You keep your BTC and use it as a tool to make money or get liquidity
3 What is Stacks and why is Granite built on it
Stacks is a Bitcoin Layer 2 blockchain It connects to Bitcoins main network allowing smart contracts to be created while inheriting Bitcoins security Granite uses this to bring lending and borrowing features directly to Bitcoin holders
4 Why is the listing of Granite a big deal for Bitcoin DeFi
A major listing brings mainstream visibility and liquidity It signals that Bitcoin DeFi is moving from experimental to real proving that you dont need to use Ethereum or Solana to get DeFi servicesyou can do it on Bitcoin
Benefits Why It Matters
5 What are the main benefits of using Granite over traditional lending
You dont need a credit score theres no middleman and its permissionless Its also transparentall transactions are recorded on the blockchain for anyone to verify
6 How can I earn interest with Granite
You can deposit assets like sBTC or STX into the protocols lending pools Borrowers pay interest on their loans and that interest is distributed to you as a lender giving you a yield on your Bitcoin
7 What does this mean for the future of Bitcoin
It transforms Bitcoin from a store of value digital gold