Loopscale, a decentralized finance (DeFi) lending protocol on Solana, temporarily halted its lending markets after suffering an approximately $5.8 million exploit. The protocol went live on April 10 following a six-month closed beta. It’s now leveraged by lending markets for tokens like JitoSOL and BONK. With about $40 million in total value locked (TVL), Loopscale has already garnered close to 7,000 lenders.
On April 26, a hacker took approximately $5.7 million USDC from Loopscale’s vaults. They stole 1200 worth of Solana (SOL) in the attack. These losses account for roughly 12% of Loopscale’s total value locked (TVL). Loopscale’s main USDC vault currently yields an APR of over 5%, and its main SOL vault over 10%.
Loopscale sets itself apart from DeFi lending counterparts like Aave with its order book model. It powers looping strategies for over 40 different token pairs. Further, Loopscale backs secondary market lending transactions, like structured credit, receivables financing, and undercollateralized lending.
Loopscale has since restored the ability to repay loans, top-up loans, and close loops. However, some functionalities are still disabled.
"All other app functions (including Vault withdrawals) are still temporarily restricted while we investigate and ensure mitigation of this exploit" - Loopscale
The company is working to resolve the situation.
"Our team is fully mobilized to investigate, recover funds, and ensure users are protected" - Mary Gooneratne
