NewsBTC
Jul 31, 2026
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Granite Protocol adds sBTC-to-USDCx lending on Borrow on Bitcoin

2 min

Granite Protocol is now listed on Borrow on Bitcoin, adding a Stacks-based lending option that lets users post sBTC as collateral and borrow USDCx. The listing highlights a variable borrow rate of 1.66% APR, isolated pools, soft liquidations, and a no-rehypothecation policy. The product excludes US users.

What the Listing Changes

The addition expands Bitcoin-linked lending routes without leaving the Bitcoin-centric stack. It indicates growing specialization in Bitcoin DeFi: comparison pages, collateral pathways, and user products focused on BTC-linked assets. This signals infrastructure maturation rather than mass adoption.

Key Features and Implications

  • Collateral and borrow: sBTC collateral on Stacks to borrow USDCx.
  • Rate: 1.66% APR variable borrow rate at listing time. Borrow costs depend on utilization, liquidity, demand, and risk parameters and can change.
  • Risk design: isolated pools limit contagion across markets; soft liquidations aim to reduce liquidation shocks during price moves; no rehypothecation indicates collateral is not reused to take additional risk.
  • Jurisdiction: not available in the United States.

Why These Details Matter

Soft liquidations affect user outcomes during drawdowns by smoothing the liquidation process, though they do not remove liquidation risk. No rehypothecation addresses a custody concern that contributed to prior lending failures by reducing counterparty complexity. Risks remain: smart contract, oracle, liquidity, liquidation, bridge, and governance.

Context for Bitcoin DeFi

Bitcoin historically held capital while other chains built the application layer. Stacks seeks to close this gap. Granite’s listing on Borrow on Bitcoin adds another venue where users can compare collateral types, stablecoin options, liquidation mechanics, pool isolation, custody assurances, supported jurisdictions, and liquidity sources. This supports evaluation by risk and cost rather than slogans.

Bottom Line

The listing is a measured but useful step for Bitcoin DeFi infrastructure. It does not indicate mainstream adoption, but it expands practical, comparable options for BTC-linked borrowing within the Bitcoin-focused stack.