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Security Enhancements

Summary

Security audit of fixes and enhancements applied to the Granite core-v1 lending protocol on Stacks, covering arithmetic safety, cross-contract cascade prevention, staking finalization ordering, accrual integrity, and governance hardening.

Audited Functionality

This engagement reviewed security enhancements applied to the protocol's core contracts following a previous security review. The changes touched borrowing, liquidation, staking, flash loans, governance, LP incentives, interest rate modeling, oracle integration, and withdrawal cap logic. Key areas of focus included:

  • Arithmetic safety fixes addressing underflow and overflow risks in staking slashes, liquidation accounting, and interest rate accrual
  • Cross-contract cascade prevention in the liquidation pipeline to stop cascading reverts from propagating across independent operations
  • Staking module hardening around the wipe-out lifecycle: detection of staking depletion via bad-debt socialization, post-wipe LP token leak prevention, and withdrawal queue finalization under edge conditions
  • Governance contract fixes for snapshot-based voting thresholds and member count handling across proposal lifecycle operations
  • Oracle adapter updates, withdrawal cap refinements, and flash loan access control improvements

Findings Breakdown

18|Total Findings
1 High3 Medium3 Low11 Info
All findings have been resolved or acknowledged by the client.

About Granite

www.granite.world

Granite is a Bitcoin liquidity protocol built on Stacks that allows users to borrow stablecoins against their Bitcoin collateral. Incubated by Trust Machines, the protocol uses sBTC (a decentralized Bitcoin bridge) to connect Bitcoin to DeFi while keeping BTC securely stored on the Bitcoin blockchain. Key features include isolated collateral with no rehypothecation (user collateral is never lent to others), soft liquidations that only liquidate the minimum amount required to restore solvency, and offline position tracking via push notifications. The protocol serves both borrowers seeking liquidity without selling their Bitcoin and lenders earning yield by providing stablecoins to the liquidity pool.

Details

Date
May 2026
Client
Granite
Disclosure
Public
Blockchain
StacksStacks

Full Report

Download the complete audit report with all findings and recommendations.