Loopscale Partially Restores Lending Functionality, Vault Withdrawals Remain Frozen

on November 6, according to The Defiant, lending protocol Loopscale on Solana has restored collateral top-up functionality for all loans, as well as repayment functionality for loans not funded by the USDC Genesis vault. Borrowers can retrieve their collateral after fully repaying their loans, with the exception of those funded by the USDC Genesis vault; vault withdrawals and other protocol functionalities remain restricted.

Loopscale stated that it identified and neutralized two attack vectors: one where a misconfigured pricing parameter enabled an attacker to obtain undercollateralized loans totaling approximately $412,000 from the SOL Genesis vault; and another involving loans with exorbitant interest rates to artificially inflate the net asset value of the USDC Genesis vault, facilitating a disproportionate redemption of roughly $521,000, which the system blocked within 30 seconds of transaction generation.

The protocol confirmed that user deposits will incur no losses, and normal operations will resume only after the full scope of the attack is determined and additional security measures are implemented.