Solana's Loopscale, a decentralized finance (DeFi) lending protocol, has temporarily halted its lending markets following a hack that resulted in approximately $5.8 million being stolen. On April 26, the attacker executed a series of undercollateralized loans, siphoning around 5.7 million USDC and impacting Loopscale's USDC and SOL vaults. These losses constitute about 12% of the total value locked (TVL) in the protocol, which is reported to be around $40 million. Loopscale's co-founder, Mary Gooneratne, indicated that the team is fully mobilized to investigate the hacker's methods and aims to resume repayment functionality quickly to prevent further liquidations. The platform, which features specialized lending markets and is distinct from traditional models like Aave, had launched on April 10, 2025, and had already attracted over 7,000 lenders. The current incident highlights the ongoing vulnerabilities in the DeFi sector, particularly surrounding the security of lending protocols and the risks associated with undercollateralized loans.

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