Solana’s LoopsCale suspends $5.8 million loans

Updated (April 26, 8:57 pm UTC): This article has been updated, including updates from LoopsCale.

Solana Solana Spancentrized Finance (DEFI) protocol LoopsCale temporarily stopped its lending market after suffering about $5.8 million in exploitation.

LoopsCale co-founder Mary Gooneratne said in an X post that on April 26, a hacker stole about $5.7 million (USDC) and 1,200 SOLANA (SOL) from the loan package after lending “a series of insufficient loans.”

LoopsCale said in an April 26 X post that since “re-enabled loan repayment, top-up and loop ended”, “(a) as we investigate and ensure that this vulnerability is mitigated”, “(a) other application features, including vault extraction, remain temporarily restricted. ”

Gooneratne added that the vulnerability only affected LoopsCale’s USDC and SOL vaults, with losses accounting for about 12% of LoopsCale’s total value lock (TVL).

“Our team was fully mobilized to investigate, recover funds and ensure users are protected,” Gooneratne said.

In the first quarter of 2025, hackers stole more than $1.6 billion worth of cryptocurrencies from exchanges and on-chain smart contracts, blockchain security firm Peckshield said in an April report.

More than 90% of these losses are attributed to the $1.5 billion attack on centralized cryptocurrency exchange Bybit by North Korean hackers.

Related: Crypto Hacks $1.6B $1.6B in Q1 2025 – Peckheard

Unique loan model

LoopsCale, which was launched on April 10, is a Defi Lengend protocol designed to improve capital efficiency by directly matching lenders and borrowers.

LoopsCale said in an announcement shared with Cointelegraph in April that it also supports dedicated lending markets such as “structured credit, receivable financing and loans owed.”

LoopsCale’s order book model distinguishes it from its Defi Lending peers like AAVE, summarizing cryptocurrency sediments into liquidity pools.

LoopsCale’s main USDC and SOL vaults produce more than 5% and 10% respectively. It also supports the loan market for tokens such as Jitosol and Bonk (Bonk), as well as a circular strategy for over 40 different token pairs.

According to researcher Ournetwork, the DEFI protocol’s TVL is about $40 million, attracting more than 7,000 lenders.

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