The DeFi protocol Loopscale suspended lending after a 5.8 million USD attack on Solana restored some operations, but many features remain limited during the investigation.
Loopscale, a decentralized finance (DeFi) protocol built on the Solana network, had to suspend lending market activities after being attacked by hackers with estimated damages of around 5.8 million USD.
According to Mary Gooneratne, co-founder of the platform, on April 26, an attacker withdrew about 5.7 million USDC and 1,200 Solana (SOL) from the protocol by executing 'a series of uncollateralized loans'.
The Loopscale team quickly responded by reactivating some essential functions such as loan repayments, capital injections, and closing loan rounds. However, many other features, including withdrawals from the vaults, remain temporarily restricted while the team investigates and implements fixes.
Gooneratne stated that the attack only affected the USDC and SOL vaults, with total damages accounting for about 12% of the protocol's total value locked (TVL). 'Our team is being mobilized to investigate, recover assets, and ensure user rights,' shared the co-founder of Loopscale.
This incident is part of a wave of attacks targeting cryptocurrency projects in 2025. According to an April report from blockchain security firm PeckShield, hackers stole over 1.6 billion USD in cryptocurrency from exchanges and on-chain smart contracts in just the first quarter of the year. Notably, over 90% of these losses stemmed from a 1.5 billion USD attack on the centralized exchange ByBit, believed to be carried out by North Korea's Lazarus hacking group.
Loopscale, officially launched on April 10 after six months of closed testing, is a unique DeFi lending model designed to optimize capital efficiency. This protocol differs from competitors like Aave by using an order book model instead of pooling deposits into liquidity pools.
The main vault of Loopscale – USDC and SOL – has provided impressive annual percentage yields (APR) exceeding 5% and 10%. According to data from researcher OurNetwork, despite being newly launched, Loopscale has quickly attracted over 7,000 lenders and built approximately 40 million USD in total value locked (TVL).
