BTCFi is the most noteworthy track in the field of Bitcoin financial applications. As one of the leading lending protocols in the BTCFi vertical field, Colend will soon be listed on the cryptocurrency exchange Gate.io through the Startup Program.
The Bitcoin sidechain market is developing rapidly, with Core being the fastest growing Bitcoin sidechain, accounting for 74% of the entire Bitcoin mining hash rate. The Colend protocol is built on Core and aims to redefine the way BTC holders unlock the value of their assets. As the protocol with the highest total locked value on the current BTCFi platform (TVL has exceeded $200 million in just six months), Colend effectively combines on-chain innovation and security with the ve(3,3) decentralized governance system, providing the crypto community with a fair and accessible decentralized financial solution.
BTCFi: Transforming Bitcoin into a Productive Asset
BTCFi further unleashes the potential of Bitcoin by transforming it from a "digital gold" store of value to a "productive asset" that can generate income through lending and staking. This transformation can also increase miner income to enhance the long-term security of the Bitcoin network. At this stage, BTCFi accounts for less than 1% of the total cryptocurrency market value, which means that this vertical field has huge room for growth, and Colend is expected to play a leading role in it.
Leveraging Core’s dual-collateral model, Colend achieves seamless integration with the broader DeFi ecosystem, enhancing Bitcoin’s utility in DeFi. Key features include decentralized and immutable transactions, multiple liquidity pools with dynamic interest rates, and a flexible collateral system.
Community-driven governance model
Colend's project token CLDN will soon be listed on the cryptocurrency exchange Gate.io through Startup. CLND is the core of the Colend ecosystem and has multiple practical uses, such as community governance, financial incentives, LP Farming, DAO buybacks, etc. The ve(3,3) model used by Colend allows users to lock their CLND tokens into xCLND to grant the necessary voting rights, thereby promoting community participation and expanding value. By participating in voting, xCLND holders can influence the annualized rate of return (APY) of the protocol, thus forming a community-driven decision-making and optimized return cycle, and continuously strengthening the ecosystem.
In addition, the "bribe" system designed by Colend further enhances its governance model by allowing Curators and Liquidity Suppliers to provide incentives to xCLND holders to vote for specific assets to increase APY. In effect, this governance model creates a self-sustaining "flywheel effect" that aligns the interests of users and liquidity providers, and voting participation, liquidity, and yields are also improved simultaneously. By integrating this flywheel mechanism into the ve(3,3) governance model, Colend fosters a dynamic, self-reinforcing BTCFi ecosystem, providing income opportunities for CLND token holders and enhancing the attractiveness of the protocol.
BTCFi has promising future growth prospects
Thanks to the upcoming Core upgrade and the institutional liquidity it has attracted, Colend is expected to continue to expand. According to Deflama data, Colend is currently among the top three in the BTCFi market and the top ten in stablecoin APY. Indicators such as TVL and trading volume also have a certain leading advantage in the market. In addition, its community-driven ve(3,3) governance model can further consolidate Colend's position as the strategic foundation of the future BTCFi industry.
As BTC liquidity is gradually released in the future, the application scenarios of the BTCFi ecosystem will also have greater growth potential.
About Colend
Colend is the leading BTCFi lending protocol in the crypto market, providing decentralized financial solutions on Core. As the protocol with the highest TVL on the Bitcoin sidechain, Colend combines innovation and security with the ve(3,3) decentralized governance system. Its CLND token will soon be listed on Gate.io, which provides more access to the protocol and supports an inclusive, community-driven governance model. As a BTCFi project that is not overly dependent on venture capital, Colend positions itself as a leader in the BTCFi field and continuously strives to provide the community with more fair and accessible decentralized financial channels.