Update (UTC on 26 April at 8:57 pm: This article has been updated to include updates from Luopscale.
Solana Decentralized Finance (DEFI) protocol Loopscale temporarily stopped its lending markets after exploitation of about $ 5.8 million.
On 26 April, a hacker said about 5.7 million USDC (USDC) and 1200 Solna (SOL) “after taking out” series of undercolateral loans “from the borrowed protocol, Loopscale co-founder Mary Gonoratte said in an X post.
Since Loopskel is “again competent loan repayment, top-up and loop closing”, but “”[a]Loopscale said in the X post of 26 April, “We are still temporarily restricted when other APP functions (including vault withdrawals) are still temporarily restricted, when we ensure and ensure the mitigation of this exploitation.
Exploitation only affected USDC and Sol Vaults of Loopscale and represents about 12% of the total value lock (TVL) of the disadvantage Loopscale, said Goonarene.
“Our team is raised to fully examine, recover money, and to ensure that the users are preserved,” said Gonartne.
In the first quarter of 2025, hackers stole more than $ 1.6 billion from exchanges and on-chain smart contracts, more than $ 1.6 billion, blockchain security firm Pekshield said in an April report.
More than 90% of those damage are responsible for an attack of $ 1.5 billion on a centralized cryptocurrency exchange by North Korean Hacking Outfit Lazarry Group.
Connected: Crypto Hack Top $ 1.6B Q1 in 2025 – Peckshield
Unique Defi Lending Model
Launched on 10 April after six months of closed beta, Loopskel is a DEFI borrowing protocol designed to increase capital efficiency by direct matching and borrowers.
It also supports specialized lending markets, such as “structured credit, receivable financing, and undercolateralized lending”, Lupskel stated in an April announcement that in the announcement shared with the cointelmph.
The order book model of Loopscale distinguishes it from DEFI lending peers such as AAV that accumulates cryptocurrency into the liquidity pool.
The main USDC and Sol Volts of Loopscale are APRS more than 5% and 10% respectively. It supports looping strategies for borrowed markets such as gitosols and bonk (bonk) and 40 separate token pairs for tokens.
The DEFI protocol has approximately $ 40 million in TVL and according to researchers Orenetwork, attracted 7,000 lenders.
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