Loopscale: Attack and Impact on the DeFi Market
Loopscale, a DeFi protocol on the Solana platform, has temporarily suspended its lending market after being exploited with losses of around 5.8 million USD. On April 26, a hacker withdrew approximately 5.7 million USD Coin (USDC) and 1,200 Solana (SOL) from the platform after executing a series of unsecured loans. Mary Gooneratne, co-founder of Loopscale, announced on X that the losses only affected USDC and SOL pools, accounting for about 12% of Loopscale's total locked capital.
Loopscale's Recovery Solution
Loopscale is working to restore payment functions to minimize unforeseen liquidation risks, with a commitment to ensuring user protection. The team is focusing on investigating and recovering the lost funds. Loopscale is known for its 'Genesis' lending pools, attracting special attention in the DeFi market through its unique Order Book model, which helps increase capital efficiency by directly connecting lenders and borrowers.
Attack in Q1 2025
In the first quarter of 2025, hackers stole over 1.6 billion USD in cryptocurrency from exchanges and on-chain smart contracts. A large portion of the losses was due to the attack of up to 1.5 billion USD on the centralized exchange Bybit by the North Korean Lazarus hacker group.
Loopscale's Special Capabilities
Launched on April 10 after six months of testing, Loopscale supports special lending markets such as structured credit, accounts receivable financing, and unsecured lending. Standing out from other DeFi competitors like Aave through its Order Book model, Loopscale has attracted over 7,000 lenders with a total locked capital of around 40 million USD. Loopscale's main USDC and SOL pools provide annual yields exceeding 5% and 10% respectively, while supporting lending strategies for over 40 different Token pairs.
