Loopscale Partially Restores Lending Functions; Vault Withdrawals Remain Frozen

TechFlow news, November 6: According to The Defiant, Solana lending protocol Loopscale has restored the ability to add collateral to all loans, as well as repayment functionality for all loans except those funded by the USDC Genesis vault. Borrowers can retrieve collateral after repaying their loans, except for loans funded by the USDC Genesis vault; vault withdrawals and other protocol functions remain restricted.

Loopscale said it has identified and contained two attack vectors: a misconfigured pricing parameter allowed the attacker to take out approximately $412,000 in undercollateralized loans from the SOL Genesis vault; the other involved using extremely high-interest loans to inflate the net asset value of the USDC Genesis vault, enabling an approximately $521,000 disproportionate redemption, which the system blocked within 30 seconds after the transaction was created.

The protocol stated that user deposits will not incur losses; restoring normal operations requires first determining the full scope of the attack and further strengthening security measures.

Source: TechFlow