KETJU Research

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Dollar lending

Colend Protocol

Not approved Too small to exit at size
Issued
2026-08-16
Last confirmed
2026-08-16
Next check due
2026-11-15
Chains
CORE

Colend is an Aave-style pooled lending market on Core. Suppliers receive receipt tokens, borrowers post collateral, and positions below health factor one may be liquidated. Documented admin roles control its upgradeable pool, oracle, and configurator. The 2026-08-16 survey measured about $222,000 of supplied base TVL and about $621,000 in the separate borrowed suffix. At 0.22% of the size floor, the venue is too small for an advised-client allocation regardless of protocol merits. We will not open an individual review until it clears that floor.

The research file

Mechanism applicability

A supplier deposits an eligible asset and receives a receipt token for the claim. Borrowers draw supported assets against collateral and pay floating interest. Colend uses health factors and allows anyone to liquidate positions below one. Supplier yield therefore depends on borrower use of the pool and repayment rather than a fixed payment.

Control and record applicability

Colend publishes separate main and BTC market contracts. These include upgradeable pool and configurator proxies, an oracle, an ACL manager, and multisig pool-admin and emergency-admin roles. Its audit table lists reviews by Halborn, CertiK, Verichains, and Zokyo and notes centralization and informational findings. Those audits do not change the size result or approve the protocol.

Exit applicability

Receipt tokens let a supplier reclaim the underlying asset, but the supplier can withdraw only when the pool has enough liquidity after borrower use. Borrowers must repay debt or keep their collateral healthy. A health factor below one lets anyone liquidate the collateral and earn a liquidation bonus.

Why the dossier still applies

DefiLlama measured about $222,000 of supplied base TVL on Core on 2026-08-16. The separate $621,000 borrowed suffix is not additional supplied liquidity. At 0.22% of the size floor, the protocol is too small, and we will not open an individual review until it clears that floor. Reopen after supplied TVL, not gross borrowed balances, stays above the size floor for 30 days, then test cash liquidity, oracle risk, and admin risk.

Research status

This is a capacity-unproven record for Colend Protocol, not a quality rejection or approval. Reported TVL says how big the venue is, not what the client owns, who can change the rules, or how a position exits at a proposed size. The individual review opens when the protocol clears the size floor.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.

ChainVerdictControlControl constraint
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