Loopscale has reopened priority lending after containing two attack routes, but restrictions still prevent some borrowers from retrieving collateral and limit withdrawals from vaults across the platform.
Loopscale reported no losses to user deposits. Borrowers may add collateral to all loans and repay eligible loans in full before withdrawing collateral. Loans funded by the USD Coin (USDC) Genesis Vault cannot be repaid, leaving their backing collateral unavailable. Vault withdrawals and other protocol functions remain limited as Loopscale works with partners on recovery.
Loopscale linked one route to a configuration flaw in its Solana (SOL) Genesis Vault: collateral was valued as a different asset. It said the error allowed about $412,000 in borrowing without adequate backing.
Loopscale also described a second route involving the USDC Genesis Vault. A loan bearing an unusually high interest rate was sold to the vault in a single atomic transaction, the platform said. The transaction raised the vault’s net asset value and opened about $521,000 for redemption. Loopscale said its system stopped the operation within 30 seconds of the transaction’s creation.
