King Size

The accusations surrounding a "scam" in Colend (also stylized as cLEND or Colend.xyz), the primary native lending and borrowing protocol on the Core blockchain (CoreDAO), stem primarily from community outrage in late 2025 and early 2026. Colend is officially positioned as a decentralized BTCFi (Bitcoin Finance) lending platform, allowing users to supply assets (like CORE, stCORE, BTC variants, stablecoins) to earn yield and borrow against collateral in a non-custodial way. It was promoted heavily by CoreDAO as a key DeFi primitive for the ecosystem. Core Allegations The main claims revolve around alleged manipulation and exploitation of the protocol during a period of high volatility and price drops in CORE (the native token), particularly around November 2025 onward: Massive CORE Deposits from Core-Controlled Addresses — Addresses reportedly linked to the Core Foundation / treasury (or "CoreDAO governance") deposited very large amounts of CORE and stCORE (hundreds...

Question: What can you say about the Colend DeFi protocol on the Core network? For almost six months, I haven't been able to withdraw my USDT that I deposited into the lending platform because the utilization rate is 100% and borrowers aren't returning the USDT, despite the high interest rate. There is evidence (https://forum.coredao.org/t/transparency-on-core-govs-movement-of-200m-community-allocated-tokens-and-loan-pledges-of-20-circulating-core-supply/1270) that wallets that deposited 20% of the total CORE token supply and borrowed all the USDT were funded by their CoreDAO treasury. So, it appears that the owners of CoreFoundation themselves orchestrated this incident by withdrawing all available stablecoins from the protocol and have no intention of returning them. Is this ethical?  -------------------------------------------------------------------- Answer: Ethical Analysis: The CoreDAO Liquidity Trap The situation you described, supported by the CoreDAO forum evidence, sh...