[Solana Lending Protocol Loopscale Partially Restores Lending Functionality]
Solana's lending protocol, Loopscale, has restored collateral replenishment functionality for all loans, as well as repayment functionality except for USDC Genesis vault-funded loans. Borrowers can retrieve their collateral after repaying their loans, but USDC Genesis vault-funded loans, vault withdrawals, and other protocol functions remain restricted.
Loopscale identified and contained two attack paths: one where a misconfigured pricing parameter allowed attackers to obtain approximately $412,000 in undercollateralized loans from the SOL Genesis vault; and another involving inflating the net asset value of the USDC Genesis vault through extremely high-interest loans, resulting in approximately $521,000 in disproportionate redemptions, which the system blocked within 30 seconds of the transaction being generated.
The protocol states that user deposits will not be lost, and restoring normal operations requires first determining the full scope of the attack activity and strengthening security measures. (Source: The Defiant)
