Update (April 26th, 8:57pm UTC): This article has been updated to include updates from the loop scale.
Solana temporarily halted the lending market after suffering a roughly $5.8 million exploit.
On April 26, hackers siphoned the loans up after they pulled out “USDC (USDC) and 1200 Solana (SOL) a “sequence of inadequate loans” from the “Lending Protocol.”
The Loop Scale has since had “revalid loan repayments, top-ups, and loop closings,” but “(a) other app features (including safe withdrawals) are still temporarily restricted during the investigation and solid measurement of this exploit,” Loop Scale said in the XX post on April 26th.
The exploit only affects the USDC and SOL vaults on the loop scale, with losses representing about 12% of the Locked (TVL) on the loop scale, adds Gooneratne.
“Our teams are fully mobilized to investigate, collect funds and ensure that users are protected,” Gooneratne said.
In the first quarter of 2025, hackers stole $1.6 billion worth of crypto from exchanges and smart contracts on the chain, blockchain security company Peckshield said in an April report.
More than 90% of these losses come from a $1.5 billion attack on Bybit, a central cryptocurrency exchange by the North Korean hacking costume Lazarus Group.
Related: Crypto Hacks Top 1.6 Billion Quarter 2025 – Peckshield
Unique lending model
Released on April 10th after a six-month closure beta, Loop Scale is a lending protocol designed to increase capital efficiency by directly matching lenders and borrowers.
It also supports specialized lending markets such as “structured credit, accounts receivable financing, inadequate loans.” The loop scale was mentioned in an April announcement shared with Cointelegraph.
The loop-scale order book model distinguishes cryptocurrency deposits from lending peers such as Aave, who aggregates cryptocurrency deposits into liquidity pools.
Loopscale’s major USDC and Sol Vaults generate APRs of over 5% and 10%, respectively. It also supports the token lending market such as Jitosol and Bonk (Bonk) and the loop strategy for over 40 types of token pairs.
The Defi protocol costs around $40 million to TVL and attracts more than 7,000 lenders, according to researcher Oresnetwork.
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