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stable-lending

Colend Protocol

Rejected
Max sleeve
Reviewed
2026-08-16 · v1
Next review
2026-11-15
Chains
CORE

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

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. Its upgradeable pool, oracle and configurator are controlled through documented admin roles. 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 $100M floor, the venue is too small for an advised-client allocation regardless of protocol merits.

The research file

Mechanism applicability

A supplier deposits an eligible asset and receives a receipt token representing the claim; borrowers draw supported assets against collateral and pay floating interest. Colend uses health factors and permissionless liquidation below one. Supplier yield therefore depends on borrower utilization and repayment rather than a fixed payment.

Control and record applicability

Colend publishes separate main and BTC market contracts, including upgradeable pool and configurator proxies, oracle, ACL manager and multisig pool-admin/emergency-admin roles. Its audit table lists Halborn, CertiK, Verichains and Zokyo reviews and acknowledges centralization and informational findings. Audits do not turn this size screen into approval.

Exit applicability

Receipt tokens allow a supplier to reclaim the underlying asset, but actual withdrawal depends on available pool liquidity after borrower utilization. Borrowers must repay debt or maintain collateral health; falling below health factor one exposes collateral to permissionless liquidation and a liquidation bonus paid to the liquidator.

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 $100M floor, the below-materiality dossier is fundamental. Reopen after supplied TVL—not gross borrowed balances—stays above $100M for 30 days, then test cash liquidity, oracle and admin risk.

Sources

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

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.

ChainVerdictGradeControl constraint
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