Loopscale, a Solana-based DeFi protocol, experienced a $5.8 million security breach affecting USDC and SOL vaults, just two weeks after the platform’s official launch.

This incident highlights ongoing security challenges within DeFi, particularly emphasizing vulnerabilities in newly launched platforms, and poses critical questions about Loopscale’s future stability and user confidence.

Loopscale Loses $5.8 Million in New Exploit

Loopscale faced a significant exploit impacting $5.8 million in user funds. The Solana DeFi platform, which rebranded from Bridgesplit, launched just two weeks before this security issue occurred.

The exploit involved an isolated issue with Loopscale’s pricing mechanism. Mary Gooneratne, co-founder, assured that the team is mobilized to investigate and recover funds while securing user assets.

Our team is fully mobilized to investigate, recover funds, and ensure users are protected. — Mary Gooneratne, Co-founder, Loopscale.

12% TVL Dip Post-Exploit for Loopscale

The incident led to a significant drop in Loopscale’s TVL, losing approximately 12%. However, the firm managed to resume some functions, such as loan repayments, though withdrawals remain restricted.

Analysts highlight potential ramifications on user trust and market dynamics. Given Solana’s prior struggles with exploits, this event underscores the critical need for continuous audits and robust security protocols in DeFi platforms.

Loopscale’s Unique Pricing Model Under Scrutiny

Solana’s DeFi ecosystem previously encountered breaches, but Loopscale’s issues are attributed to its novel collateral pricing model. Historical data from Q1 2025 reported $1.6 billion in hacks, mainly on centralized platforms.

Security experts believe ongoing audits can fortify system defenses. Loopscale’s situation illustrates the heightened risks in rapidly developing tech fields, especially for newly launched DeFi ventures.

Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.

The post Solana’s Loopscale Faces $5.8 Million DeFi Exploit appeared first on Kanalcoin.

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Filed under: News - @ April 26, 2025 10:26 pm