Granite

Granite receives a B- risk grade (32/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for Granite are: (1) 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 (2) 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 (3) The protocol is relatively new in the Bitcoin DeFi space with limited historical stress-testing during major market downturns

Granite scores 32/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 3/20, Oracle Surface: 5/10, Documentation Gaps: 2/10, Track Record: 5/15, Scale Exposure: 3/10, Regulatory Risk: 3/10, Vitality Risk: 8/10. The highest risk area is Vitality Risk at 8/10.

Among 90 rated Lending protocols on Hindenrank, Granite ranks #32 by safety (lowest risk score = safest). Its 32/100 risk score and B- grade place it in the middle tier of Lending protocols.

Granite scores 5/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.