Loopscale Suffers Exploit, Resulting in Nearly $40 Million Loss — Lets check it in a closer look

Source

What is Loopscale?

     Loopscale is a Solana-based DeFi protocol that aims to improve capital efficiency in lending markets by directly matching lenders with borrowers. After a six-month closed beta phase, the platform officially launched its public service on 10th April. However, just two weeks post-launch, it suffered a major exploit, which may sow further scepticism among investors towards DeFi projects.

The Exploit Story

     The breach reportedly stemmed from a flaw in the pricing mechanism for RateX-based collateral, which allowed attackers to drain approximately 5.7 million USDC and 1.2k SOL from Loopscale’s vaults. This accounts for about 12% of the protocol’s total value locked (TVL). Although the platform claims that borrowers remained unaffected, specific assets did indeed suffer considerable losses.

Now what is the point?

     Loopscale, like every other exploited platform, has temporarily paused its operations. In addition, an investigation in partnership with external specialists has been announced, and blah blah. They should have taken care of security; now there is nothing left but to announce a whitehat reward or concede to North Korea's Lazarus Group problem.

Originally Published at Wubits

as thread