Update (April 26 at 20:57 ADC): This article has been updated to include updates from Loopscale.
Solana Decentralized Finance (Defi) Protocol Loopscale temporarily stopped its lending markets after suffering a $ 5.8 million utilization.
On April 26, a hacker siphed approx. 5.7 million USDC (USDC) and 1200 Solana (Sol) from the loan protocol after taking out a “series of sub collateralalized loans,” Loopscale-Med founder Mary Goneatne said in an X-post.
Loopscale has since “re-enabled repayment of loans, top-ups and loop closure”, but “[a]LL Other app features (including vault extraction) are still temporarily limited while examining and ensuring mitigation of this utilization, ”Loopscale said in a 26th of April X -Post.
The utilization only affected Loopscales USDC and Sun vaults, and the losses represent about 12% of Loopscale’s total value locked (tvl), the Gooneratne added.
“Our team is fully mobilized to investigate, recover funds and ensure that users are protected,” said Gooneratne.
In the first quarter of 2025, hackers stole more than $ 1.6 billion value of crypto from exchanges and on-chain smart contracts, Blockchain security company Peckshield said in an April report.
More than 90% of these losses can be attributed to an attack of $ 1.5 billion on Bybit, a centralized cryptocurrency exchange, of the North Korean hacking -outfit Lazarus group.
Related: Crypto Hacks Top $ 1.6B I Q1 2025 – Peckshield
Unique Defi loan model
LOOPSCALE was launched on April 10 after a six-month closed beta, and is a defi lending protocol designed to improve capital efficiency by directly matching lenders and borrowers.
It also supports specialized lending markets, such as “structured credit, receivable financing and sub collateralalized lending,” Loopscale said in an April message shared with CointeleGraph.
Loopscale’s order book model separates it from Defi -releases such as Aave, which collects cryptocurrency deposits in liquidity pools.
LOOPSCALE’s most important USDC and sun vaults provide APRs respectively over 5% and 10%. It also supports lending markets for tokens such as Jitosol and Bonk (Bonk) and looping strategies for up to 40 different token pairs.
The Defi Protocol has about $ 40 million in Tvl and has attracted up to 7,000 lenders, according to researcher Ournetwork.
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