The token is not related to Loopscale, a decentralized finance (DeFi) lending protocol on Solana which paused its lending markets after a $5.8 million exploit. It’s official — the platform that could change everything for cities and states today launched, after a six-month closed beta. It has already pulled in more than 7,000 lenders and about $40 million TVL.
On April 26, a hacker launched a successful attack against Loopscale’s vaults. In totality, they made off with about $5.7 million USDC and 1200 Solana (SOL). The losses account for roughly 12% of Loopscale’s total value locked. The protocol particularly encourages the lending markets for important tokens such as JitoSOL and BONK. It powers looping strategies for more than 40 different token pairs. Loopscale additionally provides markets for specialized lending, such as structured credit, receivables financing, and undercollateralized lending.
Loopscale enables rapid interest rate discovery via its order book model, setting it apart from DeFi lending competitors such as Aave. The platform’s primary USDC vault offers a high annual percentage rate (APR) of more than 5%. In the meantime, its biggest SOL vault has an even higher APR, topping 10%.
"Our team is fully mobilized to investigate, recover funds, and ensure users are protected" - Mary Gooneratne
Loopscale has since re-enabled some functionalities.
"re-enabled loan repayments, top-ups, and loop closing" - Loopscale
However, other features remain temporarily disabled as the investigation continues.
"All other app functions (including Vault withdrawals) are still temporarily restricted while we investigate and ensure mitigation of this exploit" - Loopscale
