Colend is the first native lending and borrowing protocol on the Core blockchain, designed to unlock the power of BTCfi through decentralized, non-custodial liquidity markets. Whether you’re supplying assets to earn yield or borrowing against your collateral, Colend offers a seamless and secure way to engage in DeFi on Core.
In this guide, you’ll learn how to use Colend to supply liquidity, borrow assets, and optimize your yield opportunities.
What Is Colend?
Colend is a decentralized, non-custodial lending protocol on Core where:
✅ Suppliers provide liquidity to earn interest.
✅ Borrowers secure loans using overcollateralized positions.
✅ Flash Loans enable one-block borrowing without collateral.
Colend is a cornerstone of Core’s BTCfi ecosystem, empowering users to earn, borrow, and participate in DeFi with their Bitcoin assets.
Step 1: Connect Your Wallet
Before you can start supplying or borrowing, you’ll need to connect your wallet.
- Go to Colend: colend.xyz
- Click "Connect Wallet" at the top right.
- Select your preferred wallet (e.g., MetaMask) and approve the connection.
Step 2: Supply Liquidity and Earn Yield
Supplying assets on Colend allows you to earn interest from borrowers.
- Navigate to the “Supply & Borrow” page.
- View available supply markets and their APYs (Annual Percentage Yields).
- Click on the asset you wish to supply and select “Details” to review:
Reserve Size: Total assets supplied.
Utilization Rate: Percentage of supplied assets currently borrowed.
APY Rates: Current and projected supply yields.
- Enter the amount to supply and click “Supply”.
- Approve the transaction in your wallet.
✅ Supply Complete! You are now earning interest on your assets.
Step 3: Borrow Assets Against Your Collateral
Colend allows you to borrow assets by overcollateralizing your holdings.
- Navigate to the “Borrow” section.
- Select the asset you wish to borrow and click “Details” to review:
Max Loan-to-Value (LTV): Maximum amount you can borrow relative to your collateral.
Liquidation Threshold: The LTV at which your position may be liquidated.
Borrow APY: Annualized interest you’ll owe on the borrowed amount.
- Enter the amount you wish to borrow and review your Health Factor (an indicator of loan safety).
- Click “Borrow” and approve the transaction in your wallet.
✅ Borrowing Complete! You can now use your borrowed assets for additional DeFi strategies.
Understanding LTV, Liquidation, and Health Factor
Max LTV (Loan-to-Value)
The maximum borrowing power against your collateral. For example:
If Core (CORE) has an LTV of 70%, supplying $100 of CORE allows you to borrow up to $70 worth of assets.
Liquidation Threshold
The LTV at which your position becomes undercollateralized and is eligible for liquidation.
For CORE, the liquidation threshold is 75%, meaning if your LTV exceeds 75%, your collateral may be liquidated.
Liquidation Penalty
A fee imposed when your collateral is liquidated.
On Colend, the penalty is 10% of the liquidated collateral.
Health Factor
A safety metric indicating how close you are to liquidation.
Health Factor > 1: Safe
Health Factor < 1: At risk of liquidation
💡 Tip: Maintain a healthy LTV by overcollateralizing and monitoring market fluctuations.
Step 4: Monitor Your Position
Stay on top of your supply and borrow positions through the dashboard:
Total Supplied: View your assets earning interest.
Total Borrowed: Track your outstanding loans.
Health Factor: Keep an eye on your risk level.
Step 5: Repay Loans and Withdraw Assets
To repay or withdraw:
Go to “My Positions” on Colend.
To Repay: Enter the amount to repay and confirm.
To Withdraw: Select your supplied asset and withdraw available funds.
✅ Done! Your loan is cleared, or your liquidity is returned.
Unique Features of Colend
Flash Loans
One-block loans** without collateral, ideal for arbitrage or quick trades.
Bitcoin-Backed Markets
Deep liquidity for Bitcoin-based assets like
solvBTC.coreandBTCB.
Why Use Colend on Core?
✅ Native to Core: Fully aligned with Core’s Satoshi Plus consensus.
✅ High Yield Potential: Earn sustainable yield on supplied assets.
✅ Overcollateralized Borrowing: Secure loans with fair LTV ratios.
✅ Flash Loans: Execute arbitrage and advanced DeFi strategies.
✅ Alpha NFTs: Participate in exclusive reward programs.
Get Started with Colend Today
With Colend, you can supply, borrow, and earn yield—all on Core's secure, Bitcoin-aligned blockchain. Unlock the full potential of your Bitcoin assets in DeFi.
Start using Colend now: colend.xyz
More information: https://colend.gitbook.io/home
Want to dive deeper into BTCfi?
Explore tutorials, updates, and deep dives on Core’s blog and Core Academy — the easiest way to explore Bitcoin DeFi.
🔗 Core Website | Twitter | Telegram | Discord | YouTube | LinkedIn | Newsletter