Key Takeaways:
On April 26, 2025, Loopscale paused its lending markets after attackers drained roughly $5.8 million, representing about 12% of its total value locked.
The exploit leveraged an under collateralization vulnerability by manipulating the on-chain price feed for the RateX PT token.
Repayments, collateral top-ups, and position closures are now permitted, but withdrawals remain disabled while investigations continue.
This incident highlights the importance of robust oracle architectures, multi-layer audits, and on-chain insurance mechanisms in DeFi.
Background of Loopscale’s Lending Model
Loopscale launched in early April 2025 as a novel Solana-based DeFi protocol, offering order-book matching for lenders and borrowers instead of conventional liquidity pools. By mid-April, the platform had attracted over 7,000 users and amassed nearly $40 million in deposits across USDC and SOL vaults. Its innovative design aimed to deliver tighter spreads and more transparent loan terms, including options fo ..
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