On April 26, a hacker siphoned around $5.7 million USDC and 1,200 SOL by executing a series of undercollateralized loans, co-founder Mary Gooneratne said.

Following the attack, Loopscale announced it had re-enabled loan repayments, balance top-ups, and loop closing. However, “all other app functionalities, including Vault withdrawals, remain temporarily restricted” as investigations continue.

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Gooneratne clarified that only the USDC and SOL vaults were impacted, with the losses representing about 12% of the protocol’s total value locked (TVL).

DeFi Sector Continues to Face Cyber Threats!

The Loopscale team emphasized that they are fully mobilized to investigate the incident, recover the stolen funds, and protect users.

In the first quarter of 2025, hackers stole over $1.6 billion in cryptocurrencies from exchanges and on-chain smart contracts. Over 90% of these losses were attributed to the $1.5 billion hack on the centralized exchange ByBit, reportedly orchestrated by North Korea’s Lazarus Group.

Loopscale’s Innovative Lending Model

Loopscale officially launched on April 10 after a six-month closed beta. The platform aims to boost capital efficiency by directly matching lenders and borrowers.

Unlike traditional DeFi platforms like Aave, Loopscale operates on an order book model rather than liquidity pools.

Its main USDC and SOL vaults currently offer annual percentage rates (APRs) exceeding 5% and 10%, respectively. It also supports lending markets for tokens such as JitoSOL, BONK, and looping strategies for over 40 token pairs.

Loopscale holds approximately $40 million in total value locked and has attracted over 7,000 lenders, according to researcher OurNetwork.

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