The post Solana DeFi protocol Loopscale hacked for $5.8M appeared on BitcoinEthereumNews.com.

Solana DeFi protocol Loopscale lost over $5.8 million, roughly 12% of its Total Value Locked (TVL), to a cyber exploit.  The platform is still investigating how the attack happened, trying to identify the hackers involved and how they can retrieve the stolen funds. They are currently coordinating with law enforcement and security personnel to resolve the situation quickly. In an X post, the platform briefed its users on what it believes to be the main cause of the attack. Loopscale remarked, “The root cause of the exploit has been identified as an isolated issue with Loopscale’s pricing of RateX-based collateral. There is no issue with RateX itself related to this. Loss of funds explicitly affects depositors to SOL and USDC Genesis vaults.” Loopscale allows some functions while restricting others Attackers manipulated the RateX PT token pricing functions, draining 1200 SOL and $5.7 million USDC from the platform’s vaults.  Soon after the attack, Loopscale closed off its markets temporarily. However, after a few hours, the protocol reactivated loan repayments, top-ups, and loop closing, while other application functions, like vault withdrawals, remained restricted. The attack mostly affects Loopscale USDC and SOL vault depositors, not necessarily borrowers or loopers on the platform. However, Loopscale has promised to reveal how many users were specifically affected, how holders will withdraw from their vaults, and a technical post-mortem. Before the attack, OShield, which audited the protocol in January and February of this year, identified several vulnerabilities. The project later posted on its FAQ that all high-risk issues had been resolved. Currently, there is still an ongoing audit by Sec3 on the protocol. Loopscale, only launched two years ago, on April 10, introduced a unique order book-based lending model to structure modular loans, providing more predictable terms and minimizing rate volatility. The protocol features fixed-rate, fixed-duration, and…

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Filed under: News - @ April 27, 2025 7:16 am