Granite Feature: Community Liquidations

Granite protocol brings a new feature: Community Liquidations.

This update makes it possible for any user — no bots or code required — to participate in liquidations directly from Granite’s frontend. It’s part of our broader mission to build the most borrower-friendly and community-driven Bitcoin DeFi experience on the market.

What Are Liquidations, and Why Do They Matter?

In decentralized finance (DeFi), liquidation is a process that keeps protocols solvent by selling a portion of a borrower's collateral if its value drops below a certain threshold. Traditionally, only institutions or highly technical users with the ability to run bots could participate in these opportunities.

Granite changes that.

With the new 'Liquidate' tab, any user can now:

• Track positions that are at risk of liquidation
  
  
• Execute a liquidation directly in the app
  
  
• Help maintain protocol health—no technical expertise needed
  
  

Designed for the Bitcoin DeFi Community

“Bringing users in to be a part of the entire protocol process—from lending and borrowing to liquidating positions—aligns with the mission to make Granite the most borrower-friendly Bitcoin DeFi experience,” said Blaize Wallace, Core Contributor at Granite. “Bitcoin is a never-sell asset that we want more users to hold onto as generational wealth, and creating an easy way to access liquidations creates opportunities for users to grow their BTC.”

This release builds on other borrower-first features already live in the protocol, including:

• Soft liquidations that minimize the amount of collateral sold off
  
  
• Push notifications that warn users when they’re approaching liquidation zones
  
  

These tools help borrowers preserve more of their BTC, while still ensuring the overall stability of the system.

Why Community Liquidations Matter

Allowing everyday users to take part in liquidations strengthens the decentralization and resilience of the protocol. As Wallace put it:

“Enabling community liquidations is a key part of building a robust liquidity protocol. It allows users to directly step in and ensure the solvency of the protocol instead of relying on bots or funds. We believe the lending protocols that will rise to the top are those that prioritize security, transparency, and decentralization.”

Try It Now

Head over to the Liquidate tab to view positions that may be at risk and get started.

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