{"id":24005,"date":"2025-04-26T20:16:33","date_gmt":"2025-04-26T20:16:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=24005"},"modified":"2025-04-26T20:16:33","modified_gmt":"2025-04-26T20:16:33","slug":"solanas-loopscale-pauses-lending-after-5-8m-hack","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=24005","title":{"rendered":"Solana’s Loopscale pauses lending after $5.8M hack"},"content":{"rendered":"
\n

<\/p>\n<\/p>\n

\"Solana's<\/p>\n

Solana decentralized finance (DeFi) protocol Loopscale has temporarily halted its lending markets after suffering an approximately $5.8 million exploit.\u00a0<\/p>\n

On April 26, a hacker siphoned approximately 5.7 million USDC (USDC<\/a>) and 1200 Solana (SOL<\/a>) from the lending protocol after taking out a \u201cseries of undercollateralized loans\u201d, Loopscale co-founder Mary Gooneratne said<\/a> in an X post.\u00a0<\/p>\n

The exploit only impacted Loopscale\u2019s USDC and SOL vaults and the losses represent around 12% of Loopscale\u2019s total value locked (TVL), Gooneratne added.\u00a0<\/p>\n

Loopscale is \u201cworking to resume repayment functionality as soon as possible to mitigate unforeseen liquidations,\u201d its said<\/a> in an X post.\u00a0<\/p>\n

\u201cOur team is fully mobilized to investigate, recover funds, and ensure users are protected,\u201d Gooneratne said.<\/p>\n

\"Solana's
Loopscale\u2019s \u2018Genesis\u2019 lending vaults. Source: Loopscale<\/em><\/figcaption><\/figure>\n

In the first quarter of 2025, hackers stole more than $1.6 billion worth of crypto<\/a> from exchanges and on-chain smart contracts, blockchain security firm PeckShield said in an April report.\u00a0<\/p>\n

More than 90% of those losses are attributable to a $1.5 billion attack on ByBit<\/a>, a centralized cryptocurrency exchange, by North Korean hacking outfit Lazarus Group.<\/p>\n

Related: <\/strong><\/em>Crypto hacks top $1.6B in Q1 2025 \u2014 PeckShield<\/strong><\/em><\/a><\/p>\n

Unique DeFi lending model<\/h2>\n

Launched on April 10 after a six-month closed beta, Loopscale is a DeFi lending protocol designed to enhance capital efficiency by directly matching lenders and borrowers.<\/p>\n

It also supports specialized lending markets, such as \u201cstructured credit, receivables financing, and undercollateralized lending,\u201d Loopscale said in an April announcement shared with Cointelegraph.\u00a0<\/p>\n

Loopscale\u2019s order book model distinguishes it from DeFi lending peers such as Aave that aggregate cryptocurrency deposits into liquidity pools.<\/p>\n

\"Solana's
Loopscale\u2019s daily active users. Source: <\/em>Mary Gooneratne<\/em><\/a><\/figcaption><\/figure>\n

Loopscale\u2019s main USDC and SOL vaults yield APRs exceeding 5% and 10%, respectively. It also supports lending markets for tokens such as JitoSOL and BONK (BONK<\/a>) and looping strategies for upwards of 40 different token pairs.\u00a0<\/p>\n

The DeFi protocol has approximately $40 million in TVL and has attracted upwards of 7,000 lenders, according<\/a> to researcher OurNetwork.<\/p>\n

Magazine:\u00a0<\/strong><\/em>Ripple says SEC lawsuit \u2018over,\u2019 Trump at DAS, and more: Hodler\u2019s Digest, March 16 \u2013 22<\/strong><\/em><\/a><\/p>\n