- Loopscale halted lending after a $5.8M exploit, impacting USDC and SOL vaults and freezing some app capabilities whereas investigations proceed.
- The protocol had simply launched on April 10, providing high-yield lending markets with over 7,000 lenders and $40M TVL earlier than the assault.
- The hack provides to a tough 12 months for DeFi safety, with over $1.6B stolen in Q1 2025, highlighting ongoing dangers within the area.
Solana’s DeFi area took one other hit this week. Loopscale, a comparatively new lending protocol, has paused elements of its platform after getting drained for about $5.8 million in an exploit.
The Assault and Aftermath
On April 26, hackers swooped in and drained roughly 5.7 million USDC and 1,200 SOL by pulling off a sequence of undercollateralized loans, in accordance with Loopscale co-founder Mary Gooneratne.
Loopscale shortly jumped into motion:
The hack largely impacted Loopscale’s USDC and SOL vaults, wiping out round 12% of the platform’s whole worth locked (TVL).
“Our crew is totally mobilized to analyze, get well funds, and guarantee customers are protected,” Gooneratne stated in a put up on X.
Greater Image: DeFi’s Safety Struggles Proceed
This Loopscale breach isn’t occurring in a vacuum. PeckShield reported that simply in Q1 2025, greater than $1.6 billion in crypto was stolen — and an enormous chunk of that ($1.5B!) got here from the ByBit hack linked to Lazarus Group out of North Korea.
DeFi nonetheless feels just like the Wild West typically?
What Makes Loopscale Completely different
Launched on April 10 after a six-month beta, Loopscale tries to do DeFi lending somewhat otherwise:
- It matches lenders and debtors instantly as an alternative of pooling liquidity like Aave does.
- It helps structured credit score markets, receivables financing, and even undercollateralized lending — which, yeah, sounds kinda dangerous but additionally attention-grabbing.
The platform boasts some juicy numbers, too:
- Over 7,000 lenders joined in only a few weeks,
- Round $40 million TVL earlier than the hack,
- Major vault APRs pushing 5%+ for USDC and 10%+ for SOL.
In addition they supplied unique pairs like JitoSOL and BONK for adventurous yield seekers
Loopscale was driving some critical momentum… till the exploit hit. Now, the subsequent few days shall be crucial in seeing whether or not they can get well — and extra importantly, regain belief.