Solana decentralized finance (DeFi) protocol Loopscale has quickly halted its lending markets after struggling an roughly $5.8 million exploit.
On April 26, a hacker siphoned roughly 5.7 million USDC (USDC) and 1200 Solana (SOL) from the lending protocol after taking out a “sequence of undercollateralized loans”, Loopscale co-founder Mary Gooneratne stated in an X submit.
The exploit solely impacted Loopscale’s USDC and SOL vaults and the losses symbolize round 12% of Loopscale’s complete worth locked (TVL), Gooneratne added.
Loopscale is “working to renew compensation performance as quickly as doable to mitigate unexpected liquidations,” its stated in an X submit.
“Our staff is absolutely mobilized to analyze, get better funds, and guarantee customers are protected,” Gooneratne stated.
Within the first quarter of 2025, hackers stole greater than $1.6 billion value of crypto from exchanges and on-chain sensible contracts, blockchain safety agency PeckShield stated in an April report.
Greater than 90% of these losses are attributable to a $1.5 billion assault on ByBit, a centralized cryptocurrency trade, by North Korean hacking outfit Lazarus Group.
Associated: Crypto hacks prime $1.6B in Q1 2025 — PeckShield
Distinctive DeFi lending mannequin
Launched on April 10 after a six-month closed beta, Loopscale is a DeFi lending protocol designed to reinforce capital effectivity by immediately matching lenders and debtors.
It additionally helps specialised lending markets, similar to “structured credit score, receivables financing, and undercollateralized lending,” Loopscale stated in an April announcement shared with Cointelegraph.
Loopscale’s order guide mannequin distinguishes it from DeFi lending friends similar to Aave that combination cryptocurrency deposits into liquidity swimming pools.
Loopscale’s principal USDC and SOL vaults yield APRs exceeding 5% and 10%, respectively. It additionally helps lending markets for tokens similar to JitoSOL and BONK (BONK) and looping methods for upwards of 40 totally different token pairs.
The DeFi protocol has roughly $40 million in TVL and has attracted upwards of seven,000 lenders, in keeping with researcher OurNetwork.
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