Solana’s Loopscale, a decentralized finance (DeFi) protocol, has paused its lending markets temporarily due to a $5.8 million exploit. On April 26, a hacker stole approximately 5.7 million USDC and 1200 Solana from the lending protocol by taking undercollateralized loans, causing losses of around 12% of Loopscale’s total value locked (TVL). The protocol is working to resume repayment functionality to prevent further liquidations. In the first quarter of 2025, hackers stole over $1.6 billion worth of crypto, with the majority attributed to a $1.5 billion attack on ByBit by the Lazarus Group. Loopscale, launched on April 10, offers a unique DeFi lending model that matches lenders and borrowers directly to enhance capital efficiency. The protocol supports specialized lending markets and features an order book model different from its peers like Aave. With TVL of approximately $40 million and over 7,000 lenders, Loopscale offers APRs exceeding 5% and 10% for its main USDC and SOL vaults, respectively. It also supports lending markets for various tokens and looping strategies for different token pairs. The protocol is aiming to recover funds and ensure user protection following the exploit.