Solana's Loopscale pauses lending after $5.8M hack
Loopscale, a Solana DeFi protocol, has paused its lending markets following a $5.8 million exploit. On April 26, a hacker executed undercollateralized loans, stealing approximately 5.7 million USDC and 1200 SOL. The losses account for about 12% of Loopscale's total value locked (TVL). The protocol is working to restore repayment functionality and protect users. In Q1 2025, over $1.6 billion in crypto was stolen, with a significant portion linked to a $1.5 billion attack on ByBit by the Lazarus Group. Loopscale, launched on April 10, features a unique lending model that matches lenders and borrowers directly, supporting specialized markets and yielding over 5% and 10% APR for USDC and SOL vaults, respectively. The protocol has around $40 million in TVL and over 7,000 lenders.
