Granite Feature: Liquidity Provider (LP) Incentives Program

Granite protocol has introduced a rewards program to enhance the experience for Liquidity Providers (LPs) and borrowers.

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LPs can earn passive yield on their stablecoins by depositing them into Granite protocol to be lent out to borrowers. Through the new rewards program, LPs will now earn rewards on any stablecoins that they have deposited.

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This will increase LP returns while also maintaining Granite’s low stablecoin borrowing rates, benefitting both LPs and borrowers.

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How Will It Work?

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The rewards program will run in weekly epochs, each governed by a transparent smart contract that contains a predefined rewards pool denominated in LP tokens. Each rewards epoch will coincide with an increase in the LP deposit cap, giving LPs the opportunity to deposit before the new cap is hit in order to earn additional rewards.  Any users who participate as an LP during an epoch period will automatically earn stablecoin rewards based on their time-weighted pro-rata LP deposits. Rewards are claimable at the completion of each epoch period, and are distributed as LP tokens (Granite LP deposits).

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Since reward accrual is evenly weighted across each epoch, LPs who participate earlier in the epoch will earn proportionally higher rewards (since total LP deposits are lower earlier in an epoch) - so keep an eye out for each epoch and have your funds ready to deploy!

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Aiming to Be the Safest Way to Lend and Borrow

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Granite protocol helps users manage the biggest risks associated with DeFi lending and borrowing protocols. Granite is unique amongst DeFi lending protocols, with no rehypothecation (eliminating liquidity risk), isolated markets (eliminating cross-pool margin risk), and soft liquidations  (minimizing the impact of liquidations on borrowers) Additionally, Granite is built on the Stacks layer and uses the sBTC bridge to bring Bitcoin into DeFi, allowing users to avoid the centralization risk of other custodial lenders and custodial wrappers.‍

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These innovations set Granite apart as the safest way to lend and borrow against Bitcoin.

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With so many options in DeFi to deploy capital, the Granite protocol sets out to help users hold onto their Bitcoin, a generational asset, while still being able to participate in DeFi to the fullest extent.

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To get started with the LP Incentive Program visit: https://app.granite.world/

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