Is Granite Safe?
Risk Grade: B- (32/100)
Granite is rated as moderate risk — some novel mechanisms, generally well-understood.
Moderate risk — well-designed Bitcoin lending protocol with strong security practices and novel soft liquidation, but sBTC bridge dependency and Stacks throughput constraints are meaningful risk factors.
Granite is a Bitcoin-native lending protocol on Stacks that lets you borrow stablecoins against your Bitcoin (sBTC) without giving up custody. It uses a soft liquidation model that only partially liquidates positions to restore solvency, reducing the impact on borrowers. The protocol has completed multiple audits, runs a bug bounty program, and integrates Pyth oracles for price feeds.
TVL
$27M
Mechanisms
6
Interactions
5
Value Grade
D+
Key Risks for Granite Users
Your collateral is in sBTC, which depends on a threshold signature bridge between Bitcoin and Stacks — if this bridge is compromised, your sBTC collateral could lose its BTC peg
Stacks has slower block times than Ethereum, which means liquidations may execute with delay during rapid Bitcoin price drops, potentially creating bad debt that affects stablecoin depositors
The protocol is relatively new in the Bitcoin DeFi space with limited historical stress-testing during major market downturns
Top Risk Factors
- •Granite depends on sBTC — a non-custodial Bitcoin-backed asset on Stacks secured by Stacks validators via threshold signatures; sBTC bridge security is a critical dependency
- •Pyth oracle integration for Bitcoin price feeds on Stacks introduces oracle dependency; any price feed staleness or manipulation could trigger incorrect liquidations
- •Stacks blockchain has lower throughput and longer block times than EVM chains, which could delay liquidation execution during rapid price declines
Risk Score Breakdown
Granite's highest risk area is Vitality Risk (8/10). Here's how each dimension contributes to the overall 32/100 score:
Read the Full Granite Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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