# Development Source: https://blog.loopscale.com/development Preview changes locally to update your docs **Prerequisite**: Please install Node.js (version 19 or higher) before proceeding.
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If you're a VSCode user, consider the [MDX VSCode extension](https://marketplace.visualstudio.com/items?itemName=unifiedjs.vscode-mdx) for syntax highlighting, and [Prettier](https://marketplace.visualstudio.com/items?itemName=esbenp.prettier-vscode) for code formatting. ## Troubleshooting This may be due to an outdated version of node. Try the following: 1. Remove the currently-installed version of mintlify: `npm remove -g mintlify` 2. Upgrade to Node v19 or higher. 3. Reinstall mintlify: `npm install -g mintlify` Solution: Go to the root of your device and delete the \~/.mintlify folder. Afterwards, run `mintlify dev` again. Curious about what changed in the CLI version? [Check out the CLI changelog.](https://www.npmjs.com/package/mintlify?activeTab=versions) # Loopscale Blog Source: https://blog.loopscale.com/home Updates, stories, and announcements from the Loopscale team *** ## Recent # ACRED RWA Looping: USDG Subscriptions Now Live Source: https://blog.loopscale.com/posts/acred ## ACRED RWA Looping: USDG Subscriptions Now Live The [Securitize Tokenized Apollo Diversified Credit Fund (ACRED)](https://securitize.io/primary-market/apollo-diversified-credit-securitize-fund) has been live on Loopscale for two months now, as collateral for borrow and for leverage via real-world asset (RWA) looping. ACRED is a tokenized feeder fund launched and managed by Securitize that provides investors access to the Apollo Diversified Credit Fund, a diversified global credit strategy investing across corporate direct lending, asset-backed lending, performing credit and dislocated credit. For assets like ACRED, Loopscale pairs permissionless liquidity with permissioned collateral. Through this model, any holders of USDG can lend [Global Dollar USDG](https://globaldollar.com/) into the RWA Vault, while verified, accredited borrowers access fixed-rate loans against ACRED collateral. **This is how we bring institutional assets onto onchain credit rails.** As of now, \$6.855M of ACRED is currently deposited into the ACRED / USDG Loop on Loopscale, with \$6.024M USDG lent against ACRED via Loopscale's RWA USDG Vault. ## New: Subscribe to ACRED Directly with USDG Previously, ACRED subscriptions were processed exclusively in USDC. Now, users can subscribe and deposit using USDG directly, eliminating the need for a USDC -> USDG swap and avoiding potential associated slippage and fees. By removing a swap from the looping process, **there is now a material execution improvement for users opening or closing positions in size**. This makes a difference with an institutional-grade asset like ACRED, where even a few basis points matter in execution. ## Why Credit Matters for Tokenized Real-World Assets Tokenization comes first. The next phase is credit. Issuers need credit infrastructure that will scale RWAs onchain. A tokenized asset sitting on-chain is only half the story; the real value is unlocked when that asset becomes functional collateral, with opportunity for leverage via looping and other structured products. Loopscale’s **fixed-rate, fixed-duration loans and per-collateral pricing** are key in unlocking productive use of these assets onchain. This is the future of RWAs on Solana: a shift from simple issuance to deep utility. # How Loopscale Collateralizes CLMM Liquidity Positions Source: https://blog.loopscale.com/posts/clmm ## How Loopscale Collateralizes CLMM Liquidity Positions Concentrated liquidity positions are a significant asset class on Solana, operating within defined price ranges earning yield from trading fees. But before Loopscale, they couldn't be used as collateral anywhere. On Loopscale, LP tokens from [Orca](https://www.orca.so/) and [Raydium](https://raydium.io/) can be posted as collateral for borrowing, something only possible because Loopscale's order book architecture prices each position on its own terms rather than running it through a pooled lending model. ## Why pool-based lending can't price LP collateral Pool-based lending protocols set a single borrow rate based on utilization. That rate applies regardless of what collateral is backing the loan. A borrow against USDT gets the same rate as a borrow against a concentrated liquidity position, which makes no sense from a risk-pricing perspective. LP positions are structurally different from standard tokens. A concentrated liquidity position has a price range, a fee tier, and exposure to two underlying assets. Pricing this kind of collateral requires evaluating each position individually — its composition, its range, its underlying assets. Pool-based models aren't built for that. They're built for single tokens with a single oracle price. ## How Loopscale's order book handles it Loopscale's order book architecture matches lenders and borrowers directly, with each loan priced per collateral. A lender decides what collateral they'll accept, at what LTV, at what rate, for what duration. If a lender is comfortable with a USDT-USDC Whirlpool position as collateral — a stablecoin pair with tight range and predictable behavior — they can offer terms that reflect that specific risk profile. A different lender might price a volatile LP pair differently. In practice, most LP lending happens through Vaults. Orca launched dedicated Vaults on Loopscale — [one for USDC](https://app.loopscale.com/vault/3Poc8EoDyTdtLXf4AUQf3dHvaxUJNb1wspRkizrbe5jR) and one for [USDG](https://app.loopscale.com/vault/31vgw6Bvg7AtiQb8RJmdYohvVVASQ9zGmGu33AhYe6pH) — that fund borrowing against Orca LP positions. The underlying mechanism is the same whether the lender is a Vault or an individual: per-collateral pricing, isolated risk, and fixed rates. ## How to borrow against LP positions To borrow against a concentrated liquidity position, go to [app.loopscale.com/borrow](app.loopscale.com/borrow) and select the asset you want to borrow. Available collateral types are typically scoped to the borrow asset — a USDC borrow will show USDC-paired LP positions as eligible collateral, a SOL borrow will show SOL-paired positions, and so on. Select your LP position, set your desired LTV, and confirm the transaction. For users looking to utilize the full power of Loopscale: [these positions can be manually looped](https://docs.loopscale.com/using-loopscale/loop#manually-open) to gain leverage on a CLMM LP. Concentrated liquidity positions are some of the most powerful on-chain primitives in DeFi. Supporting them as collateral requires a lending model that can evaluate each position individually — that's Loopscale's order book-based markets. # Access the Loopscale Closed Beta Source: https://blog.loopscale.com/posts/closedbeta Loopscale is blockchain infrastructure that brings efficiency and flexibility to asset-based capital markets. It enables the compatibility of complex and long-tail collateral as well as configurability of loan structure. The Loopscale platform facilitates borrowing transactions ranging from DePIN participants financing hardware purchases with network tokens, whiskey traders leveraging existing inventory for purchase orders, and early employees at protocols seeking liquidity on locked assets. ‍ ## Introducing Loopscale Today, we’re opening the Closed Beta for our new permissionless product, Loopscale, a DeFi-familiar user experience, powered by these primitives and made compatible with RWAs and future tokenized assets. ‍ We’ve layered a new primitive, the Loopscale Creditbook, to generate virtual orderbooks across sets of standardized terms such as collateral, liquidation ratios, oracles, maturities, and fees. By abstracting order parameters and allowing differentiation only by APR, these standardizations concentrate protocol liquidity for efficient matching. ‍ ## How it works Lenders create offers by defining eligible collateral, APR, and durations. Offers are virtualized to a set of orders across matching orderbooks to be filled by borrowers to access the best market rates. Upon repayment, the principal is returned to the creditbook until the lender withdraws funds. ‍ Lenders can customize default handling, choosing between collateral repossession or principal receipt via third-party liquidation. Loans default if the loan is not repaid by the maturity date or the ratio of collateral to the debt value reaches the liquidation ratio. ‍ ## Why Loopscale? Loopscale is a new paradigm in on-chain finance that introduces: 1. **Robust collateral support**: Bring a variety of tokenized assets to Loopscale to build off of them. Allow lenders to set specific terms for collateral types, preserving liquidity while minimizing the risk surface area of liquidation. 2. **Bilateral loan matching**: Improving market efficiency and risk control for lenders and reducing the cost of capital for borrowers 3. **Virtualized lending orderbooks**: Concentrating liquidity for bilateral loans across standardized terms while preserving long-term flexibility Fixed-rate, fixed-term borrowing: Enabling execution of specific investment strategies over longer time horizons 4. **Segregated collateral management**: Reducing risk and eliminating potential liquidity mismatches with non-rehypothecated collateral ‍ ### Robust collateral support The absence of collateral segregation in many lending platforms also limits the diversity of eligible collateral. Some protocols have attempted to address this issue by creating restricted pools, but this ultimately leads to capital fragmentation and higher borrowing costs for all markets. ‍ With Loopscale, lenders may set specific terms for each collateral type, concentrating liquidity by tailoring terms on a per-collateral basis. Each loan is isolated, minimizing the disruption and risk of liquidations compared to platforms that pool risk across all assets. This leads to the ability to support a broad base of crypto native collateral as well as RWAs and security tokens. ‍ ### Bilateral loan matching Current DeFi lending applications determine borrowing rates using a curve and distribute the yield across a broad lender base. This approach prioritizes liquidity and ease-of-use for lenders at the expense of interest rates for borrowers. While there may always be a market for lenders willing to accept lower rates in exchange for simplicity, this design reduces market efficiency for lenders with risk preferences who are prepared to actively manage capital, leading to an increased cost of capital for borrowers. ‍ ### Virtualized lending orderbooks While there have been lending protocols supporting bilateral loans, many have failed to reach critical mass due to the fragmentation of liquidity inherent to one-to-one relationships. At launch, Loopscale abstracts the parameterization of loans, concentrating liquidity for bilateral loans across a series of standardized terms. Over time, more orderbooks will be introduced across more granular parameters. This approach enables short-term liquidity growth while preserving long-term flexibility. ‍ ### Fixed-rate, fixed-term On-chain lending products often experience fluctuating rates due to sudden changes in demand, making them unsuitable for executing specific investment strategies. Bilateral loans, lending orderbooks, and automated matching broaden the surface area for loan terms without introducing additional complexity. ‍ ### Segregated collateral management Most lending platforms in DeFi today are built on the early money market structures pioneered by platforms like Aave and Compound. These models pool risk across all assets, making it more challenging to accurately price the risk associated with individual collateral assets. This approach has led to some of the most significant exploits in DeFi and results in substantial inefficiencies in pricing, as lenders must account for the risk of a diverse collateral base uniformly. An issue with one asset can have cascading effects across all assets, driving up the cost of borrowing against less volatile assets. ‍ Loopscale employs a novel approach by ensuring that no collateral is rehypothecated, meaning assets are not lent out while being used as collateral. This strategy not only reduces risk but also eliminates the potential for liquidity mismatches involving expected collateral in emergency situations. ‍ ## Closed Beta As part of the launch of our Closed Beta, anyone can create an account, joining the waitlist to access platform functionality. With a Closed Beta access code, users can borrow and lend on Loopscale. You can find access codes in our Discord server. After joining the Closed Beta, you will be invited to join the Loopscale Closed Beta Telegram group ‍ ### What should I try? We invite you to create an account and explore the platform. Here are some features you can try: 1. View markets and explore the Creditbook 2. Discover new collateral options 3. Start a loan by borrowing funds 4. Check out your portfolio ‍ For a more detailed guide on using the platform, please refer to our product documentation. ‍ ### How else can I get involved? We encourage you to join our Discord community and follow us on Twitter to stay up-to-date with the latest news and developments. Message us for a Closed Beta access code, and waitlisted users can still refer other users to boost their position on the waitlist and earn points.k tokens, whiskey traders leveraging existing inventory for purchase orders, and early employees at protocols seeking liquidity on locked assets. # Flex Appeal: Lending for Any Token Source: https://blog.loopscale.com/posts/flexappeal Pool-based lending is dead. The market just doesn’t know it yet. Limitations in collateral born from the pool model are holding back onchain lending. Look at what’s happening on Solana right now: widespread adoption of new token primitives. * SOL LSTs and restaking derivatives: \$7B+ TVL * Meteora's MLP tokens: \$1B+ TVL * Orca Whirlpool liquidity positions (NFTs): \$300m+ TVL * Natively-staked SOL: 60% of all SOL And yet, few of these assets can *effectively* be used as collateral in lending markets. This is a massive market inefficiency. The reason is simple: *pool-based lending protocols are fundamentally broken*: * Significant liquidity required to avoid volatile rates. * Lengthy governance processes to add new assets. * One-size-fits-all risk parameters independent of collateral quality constrains a pool by its riskiest collateral. * Naive pricing mechanisms (utilization curves) lead to overly conservative or risky terms for collateral. This model worked in DeFi 1.0 when we only had a handful of large-cap assets. It fails completely for DeFi 2.0’s long tail of structured products and derivatives. ## How Loopscale fixes lending Instead of pools, Loopscale uses direct order book matching. If a lender and borrower agree on terms, a market exists. That’s it. No minimum liquidity requirements. No governance overhead. No artificial constraints. This fundamental redesign onchain lending markets both unlocks liquidity for new assets *and improves LTVs and rates for established assets*. ## New possibilities Here’s a few concrete examples of what Loopscale enables: * Orca liquidity providers can leverage liquidity positions, reducing the opportunity cost of providing liquidity. These liquidity providers can even adjust their positions while they are being used as collateral. * Any yield token can be used for a fixed-cost, leveraged yield strategy (see: Loopscale's Yield Loops). * Validators and native-stake SOL holders can access liquidity without reducing their stake or selling their positions. * Any liquid staking or restaking token can immediately find a lending market. * Traditional finance products, including undercollateralized loans and RWAs, can bridge into DeFi lending markets with custom terms and mechanics. ## The imminent, systemic risks of pools November 2022: Aave pauses 17 markets due to CRV volatility caused by a massive short position. This is not a design tradeoff. It’s one of the many times the systemic risks of pools have shown themselves. The incident highlighted the core flaws of the pool model: **Risk from multi-collateral pools**: When Aave users deposit assets, they enter a shared pool where trouble in one market can spread to others. **One-size-fits-all parameters**: Pool-based protocols have uniform, governance-set parameters. Users cannot adjust collateral requirements or liquidation thresholds for their positions. In these scenarios, lending pools face a choice: shut down or blow up. Loopscale's Modular Lending Markets operate in complete isolation. If CRV faces volatility, it affects only CRV markets. Other markets continue normally. **This is the only way lending markets can scale to support hundreds of different assets** . ## The path forward Loopscale bypasses traditional constraints that have limited DeFi lending, enabling lending markets based on actual demand to form naturally for any asset. Loopscale allows risk to be priced accurately and prevents systemic contagion. Loopscale provides practical solutions to real problems that exist in DeFi today. Pool-based lending won’t disappear overnight. But the direction is clear. The future of lending needs to support hundreds of assets with different risk profiles and market dynamics. Loopscale is the only approach that scales to meet these requirements. # Introducing Loopscale Genesis Phase Source: https://blog.loopscale.com/posts/genesis Today marks one week since the [public launch](/posts/launch/) of Loopscale. In that time, TVL has grown to over \$40M across 6,000 weekly active users, an early sign of market demand for modular, order-book based lending. If you’ve explored [the app](https://app.loopscale.com) since our \[public launch, you may have noticed the *Genesis Vaults*, the set of flagship Loopscale Vaults that quietly went live as part of our rollout. Today, we’re formally introducing the *Genesis Phase*, a four-week initiative to bootstrap liquidity and reward early users. The Genesis Phase is the first opportunity to earn designated incentives by supplying to the Genesis Vaults. ## What are Loopscale Vaults? Historically, order book-based lending markets have faced two primary challenges: liquidity and complexity. Over-parameterization of markets can fragment supplied capital and complicate the lending experience. Loopscale Vaults solve these challenges, enabling passive lenders to earn yield across multiple Loopscale Markets. Users can deposit to Vaults, each with a unique risk profile optimized by a Vault Curator. Curators define eligible markets and terms for the Vault. Unlike vault products in other protocols, Loopscale Vaults are directly built on top of the core Loopscale loan primitive. This means Vaults lend into the same markets as individual lenders and capital remains composable and price-responsive. Loopscale’s modular architecture allows us to preserve the sophistication of order book lending while making it simple and accessible through Vaults. Advanced lenders can still supply directly to the order book with custom parameters to express specific market outlooks or strategies. ## Genesis Phase The Genesis Phase is designed to grow protocol liquidity and reward early users. Boosted incentives apply to the Genesis Vaults with initial markets for USDG, USDC, and SOL. As the curators for the Genesis Vaults, we’ve taken a rigorous approach to risk with strict collateral inclusion criteria and conservative loan terms. Additionally, we’ve implemented a **supply cap of \$40M across all Genesis Vaults**. ## What's Next? The Genesis Phase began with our public launch and will continue for the remaining 3 weeks. Until May 8, depositors can earn boosted incentives by supplying to the Genesis Vaults on the [Loopscale app](https://app.loopscale.com). This is the first step in a broader roadmap focused on rewarding long-term participation and scaling the Loopscale protocol. In the coming months, we’ll introduce third-party curators, launch new Vaults and strategies, and roll out additional incentive programs that deepen ecosystem alignment. Our goal is to establish Loopscale as the programmable credit layer for Solana, enabling flexible, modular lending across a wide range of use cases. # Loopscale is now live: A new standard for onchain borrowing and lending Source: https://blog.loopscale.com/posts/launch After six months in closed beta with over \$750M borrowed and 50,000+ users waitlisted, Loopscale is now live and open to everyone. Backed by Coinfund, Solana Ventures, Coinbase Ventures, Jump, and Room40 Ventures, Loopscale establishes a new standard for onchain borrowing and lending. With Loopscale, users can borrow against digital assets at predictable rates instead of selling them, or lend their assets to earn interest. By combining the principles of traditional credit market structure with the advantages of public blockchains, our infrastructure creates modular lending markets with greater flexibility and efficiency than those of both conventional finance and first-generation DeFi protocols. ## Why lending? In crypto, lending is often conflated with speculative leverage trading. Outside of finance, lending is widely vilified as predatory rather than recognized as a catalyst for economic growth. But history tells a different story—societies that innovated in credit consistently outpaced those that didn't. The role of credit is underscored throughout periods of economic prosperity, from the 17th century Dutch bond markets that transformed a small nation into a global power to the syndicated loan markets of today that finance corporate expansion. We built Loopscale because we recognize that credit is a chief engine for economic progress. We also recognize the evolution of money and credit follow parallel paths. The explosive growth in stablecoin usage signals a consensus forming around internet-native money as the future of value transfer. As money becomes borderless and instant, it's clear that credit belongs on these same rails, pairing programmable money with programmable risk to create a new and better financial system. If the promise of Solana is Internet Capital Markets, the promise of Loopscale is Internet Credit Markets. ## Out with the old… The first wave of DeFi lending protocols—multi-asset pools with algorithmic risk management— were designed at a time when builders were limited by Ethereum’s constraints and demand for onchain credit was uncertain. While they successfully proved the tremendous demand for permissionless borrowing, the structural flaws of the pool model are materializing as crypto matures: 1. **Capital inefficiency**: Algorithmic risk pricing fails to efficiently allocate capital, leaving significant funds idle. This idle liquidity creates an inherent rate spread that dilutes returns. 2. **Innovation bottlenecks**: Adding new assets requires lengthy governance votes and significant initial liquidity, creating high barriers to entry for new or novel assets. 3. **Systemic risk**: In multi-asset pools, interest rates are set independent of collateral. Because asset terms such as LTV ratios and interest rates must accommodate the riskiest asset, safer assets face artificial restrictions on capital efficiency. But the conditions that originally necessitated these compromises no longer exist. Demand for onchain credit is now proven, and better architectures are now feasible with Solana. ## …In with the new Today, Loopscale introduces a new [modular lending infrastructure](/posts/modularlending) that both solves these issues and unlocks entirely new financial products and markets. The foundation of the Loopscale protocol is a powerful order book matching borrowers and lenders directly across parameters like rate, collateral type, LTV, payment schedule, and default conditions. The design of the protocol is conceptually simple, creating a flexible foundation that enables new, powerful applications. However, while the flexibility of order books offer superior capital efficiency and risk isolation, they’ve historically struggled with fragmentation and complexity. Our interface intentionally simplifies the borrowing and lending experience while preserving the scalability and flexibility of the core protocol. Lenders can efficiently deploy capital across multiple markets, and borrowers gain immediate access to liquidity without navigating complex order books. By reimagining lending from first principles, Loopscale enables: 1. **Markets for the next generation of digital assets**. Flexible market infrastructure [supports sophisticated assets](/posts/flexappeal) like liquidity positions, staked tokens, and cross-protocol positions. When willing counterparties exist, markets can form without risk of cross-asset contagion. 2. **Precise risk management**. Isolated collateral and flexible parameters eliminate systemic risk and one-size-fits-all exposure. 3. **Lend rate = borrow rate**. Direct matching eliminates the liquidity requirements present in pool models, closing the rate spread to improve lending yields and reduce borrowing costs. 4. **Predictable costs and yield**. Fixed-rate, fixed-duration loans create predictability for borrowers and lenders. While newer protocols have layered order books on top of pools (thus inheriting their inefficiencies), Loopscale instead provides pool-like abstractions that natively leverage order books. Loopscale Vaults, managed by third-party curators, provide a passive lending experience while maintaining the underlying advantages of order books. ## Loopscale today Loopscale’s architecture translates directly into useful DeFi products today, each leveraging different advantages of the core protocol. **Vaults**: Passive yield strategies where external curators set terms and manage market selection. These vaults distribute returns to their participants, creating an accessible entry point for passive lenders seeking lending yields without active management. **Loops**: One-click leverage for yield-bearing tokens. Users can leverage yields from assets like staked tokens and Jupiter’s JLP. Loops atomically borrow the collateral token at fixed-rates, maintaining a leverage position without the risk of liquidation due to volatile rates. **LP Position Financing**: Leverage for Orca Whirlpool (liquidity provider) positions without sacrificing yield. Borrowers can modify price ranges, deposit/withdraw liquidity, and harvest fees while positions remain collateralized. **Direct Borrowing**: Fixed-rate loans against the widest selection of tokens as collateral with better loan-to-value ratios. Each market offers terms that accurately reflect the specific risk profile of the underlying asset. **Advanced Lending**: Complete control over rates, durations, and collateral requirements based on individual risk appetite and market outlook. Sophisticated lenders can craft precise risk-reward strategies impossible with a pool-based model. ## The next generation of onchain credit Loopscale’s architecture creates the foundation for the [next frontier of onchain financial products](/posts/structuredproducts), unlocking new use cases such as receivables financing, undercollateralized lending, and specialized markets for tokenized real-world assets. Our public launch will be followed by the start of the Genesis Supply Program, a 4-week incentive program to bootstrap liquidity for the flagship Loopscale Vaults. This program represents the first step in our broader roadmap to grow the Loopscale protocol and ecosystem. [Follow us on X](https://x.com/Loopscale) to be the first to read product updates and future announcements. Visit our [Discord](https://discord.com/invite/A9xnqqzACF) to join our community, get support, and provide feedback. ## About Loopscale Loopscale is building the next generation of credit markets on efficient, open networks. Built on Solana, order book architecture directly matches lenders and borrowers, eliminating rate spreads while supporting specialized assets like liquidity positions and staked tokens. This modular approach to lending unlocks sophisticated financial primitives—from structured credit to undercollateralized lending—while delivering a superior experience for DeFi users today. # Loops 2.0 is now live: Leveraged Borrowing for Every Onchain Asset Source: https://blog.loopscale.com/posts/loops2launch Loops have processed over \$2 billion in cumulative borrowing volume across LSTs, PTs, RWAs, LP positions, and directional exposure on tokenized commodities and equities. Loops 2.0 is the largest upgrade since the product launched: a rebuilt execution engine, expanded asset coverage for RWAs and bridged assets, and a new position management layer for entering, managing, and exiting leveraged positions. The original Loops product built the foundation. Fixed-rate borrowing, per-collateral risk pricing, atomic execution. Loops 2.0 extends that execution layer to handle the assets that are the future of DeFi while enhancing both asset custody security and security for users on execution. ## What changed and why A tokenized treasury fund can’t settle atomically with a SOL swap. Asset issuer redemptions can take days or even quarters. Bridged assets route through infrastructure that pool-based lending protocols don't account for and handle cross-contamination risk that pool lenders can’t price. Tokenized treasuries, credit funds, sovereign debt, non-Solana assets: each has its own settlement logic, redemption mechanics, security considerations, and regulatory constraints. Loops 2.0 adds the execution and management infrastructure to handle all of this. Any asset the Credit Order Book can price now has a path to Loop execution, whether it settles instantly or requires async flows. ## Execution engine ### Atomic multi-hop, multi-route execution Loops 2.0 executes through Jito Bundles with multi-hop swap paths, significantly increasing the surface area for atomic Loops. This comes with better fill prices, reduced slippage, and more reliable execution. ### The Loopscale Router A new routing engine aggregates liquidity across 15+ venues: Jupiter, Titan, dFlow, Exponent, Flash Trade, Jupiter Perps, OnRe, Hylo, PRISM, Securitize, and more. The router composes multi-step routes and selects the best pricing path. Loop pairs can be significantly expanded, and existing pairs have seen a large increase in consistency of execution. ## Expanded asset support ### PRISM: instant RWA settlement Looping an RWA means winding and unwinding positions through infrastructure that doesn't settle in the same block and often not the same chain. Settlement windows, issuer redemption queues, regulatory wrappers, and bridged asset flows all result in both a poor DeFi experience as well as increased cost for loopers, leading to unprofitable positions. PRISM aggregates secondary market partners and asset issuers into a single settlement layer. It handles delayed settlement, issuer redemption, and async swap flows, powering instant settlement for permissioned assets on Solana. Launch integrations include Securitize redemptions, Superstate redemptions, Fission async swaps, Plume Nest assets, and LayerZero OFTs. Users can now Loop RWAs, wind and unwind async positions, and access asset categories that were previously incompatible with Loop execution. ### Any principal/collateral pair Every asset pair the Credit Order Book can price now has a path to Loop execution. A new asset pair explorer lets users input any principal and collateral combination and access stats, asset data, and position management for that market. Every pair has tracked statistics and a direct view into the Credit Order Book: rates, order depth, active loans, and available liquidity. No curated market pages. If the Credit Order Book can price it, the pair has a market. ### Manual Loop construction Some asset pairs require custom swap paths that the Loopscale Router can't auto-compose. Manual Loop construction lets users build their own route, choose specific venues, set leverage precision, and execute. Users who want to route through a particular venue or control intermediate swap steps can do that directly. ## Position management Loops 2.0 rebuilds how users interact with their positions. Enter and exit positions through in-app swaps powered by the Loopscale Router. Increase or decrease leverage, swap collateral assets, borrow more, withdraw collateral, repay, top up in an advanced loop builder flow that lets users construct multi-step position changes in a single, atomic flow rather than executing each action separately. Each action previews the impact on health factor, liquidation price, and effective leverage before confirmation. A toggle switches between loan view (collateral balance, borrow balance, interest accrued) and Loop view (effective leverage, net exposure, entry price) on any position. ## Analytics PnL tracking across durations, multiple collateral assets, and different debt types. Profit and loss per position accounts for borrow costs, collateral appreciation, and swap fees. Historical event logs record every action taken on a position. New charting surfaces performance visualization across time. Portfolio-level history spans all active and closed positions, with Loop performance breakdowns showing yield earned versus borrow cost paid. ## What this means for DeFi Loops 2.0 extends the core Looping functionality across the full Credit Order Book, supporting any asset lenders are willing to price. As the complexity and sophistication of assets and their redemption mechanics continue to increase, Loopscale will be at the forefront of their integration into the DeFi credit ecosystem. An asset issuer or protocol building a new tokenized product can plug into the Credit Order Book and have lending, borrowing, and leveraged execution available the day it launches, with rates priced to that specific asset's risk profile. As tokenized finance scales, the infrastructure that prices and executes credit for these assets needs to keep pace. Loops 2.0 is that infrastructure. # Pool-based DeFi lending is inefficient by design. Here’s how Loopscale fixes it. Source: https://blog.loopscale.com/posts/modularlending # Pool-based DeFi lending is inefficient by design. Here’s how Loopscale fixes it. DeFi lending has long been defined by the capital-inefficient pool model. Market maturity is exposing the limitations of this model, which emerged from Ethereum's architectural constraints. With unprecedented capital flows into the ecosystem, we need lending infrastructure that matches the sophistication of modern finance. Loopscale is that infrastructure. Welcome to our series on how Loopscale is building better lending on Solana. ## The problem with pools It’s a common belief that the difference in lend and borrow rates in pools is a fee charged by the protocol. In reality, this spread only reflects the cost of poor protocol design. Pool-based lending protocols set interest rates based on utilization, i.e. how much of the pool liquidity is currently borrowed. As utilization increases, rates rise to incentivize repayment and attract new deposits. And as utilization decreases, rates fall to attract more borrowers. This design incentivizes a balance between supplied and borrowed capital while also ensuring sufficient excess liquidity for withdrawals. The elephant in the room? An inherent spread between lend and borrow rates. Borrowers might pay 10% while lenders only earn 8%, because borrow interest is paid on borrowed assets but distributed across the entire supply—both active and idle liquidity. While the lending protocols of today have contributed much to the success of the DeFi ecosystem, the time is now for Lending 2.0. Built on Solana, Loopscale is not hindered by previous technical limitations and can build onchain order books with the scalability, capital-efficiency, and speed needed for the next era of the crypto economy. ## A better model: Modular Lending Markets Loopscale introduces a new market structure to onchain lending, combining the best of order books and pools. Each market is *modular*—defined by specific terms, collateral types, and rates. On Loopscale, lenders set rates per-collateral and per-principal, unlike pool models where protocol-set, algorithmic rates apply uniformly. For example, borrowing USDC against USDT collateral should be cheaper than against SOL (as it is on Loopscale), but pool models charge the same rate regardless of collateral quality. **This means, for the first time in onchain lending, the lend rate equals the borrow rate**. Loopscale’s protocol design eliminates the idle capital requirements that dilute returns. Rates emerge from the market rather than from deterministic algorithms. Modular Lending Markets also offer advantages in risk management and collateral flexibility. Lenders benefit from being able to price risk on a per-asset basis. They can also choose to accept only certain collateral, taking on only the risk of their choice. While pool models are constrained by the riskiest included asset, Modular Lending Markets have the granular risk pricing controls necessary to support any asset. Higher-risk collateral will command higher rates and lower LTVs, while established assets will find more competitive terms. New assets don’t need deep pool liquidity, just willing counterparties to create a market. This enables markets for novel and emerging asset classes underserved by traditional DeFi lending markets. **If there are lenders and borrowers, there is a market**. ## Common concerns — and how we address them The shift to order book lending raises two key challenges: unutilized capital and liquidity fragmentation. For unutilized capital waiting to be matched on the order book, we've implemented Optimized Yield. Optimized Yield automatically routes any unutilized liquidity to integrated pool lending protocols, ensuring lenders earn competitive yields until their orders are filled. As for liquidity fragmentation, we've solved this with Virtual Liquidity. This is an abstraction that 1) enables lenders to place orders that span multiple markets with a single capital commitment and 2) offers borrowers an aggregated view of this multi-parameter liquidity while maintaining atomic settlement. ## Why now? Using order books has been impractical until now due to high gas costs and computational constraints. Solana’s architecture fundamentally changes this. Its low transaction costs and high throughput make sophisticated market structures viable at scale. With Solana, Loopscale can implement abstractions like Virtual Liquidity that accomplish the user experience of pool models without compromising on scalability. The rise of yield-bearing assets—from AMM LP positions to JLP and LSTs—creates an unignorable demand for what we're building. Loopscale unlocks liquidity for these specialized assets that are poorly served by pool models. ## Lending and beyond Order books deliver not just capital efficiency but also the flexibility that modern lending markets require. Modular Lending Markets on Loopscale support fixed rates, custom repayment schedules, complex collateral types, and sophisticated lending strategies that are impossible with the rigid pool model. As DeFi matures, this functionality will prove to be critical. Structured products and risk controls are a prerequisite for institutional capital to arrive onchain. Order books and Modular Lending Markets are DeFi’s key to scale. **It’s time to accelerate**. # How OnRe Increased TVL by 15% by Integrating with Loopscale Source: https://blog.loopscale.com/posts/onre OnRe Finance brings real-world reinsurance yields to Solana through ONyc (Onchain Yield Coin). Onchain capital is pooled and deployed into reinsurance contracts, and yield is produced by premiums and collateral performance. ONyc appreciates in token price via this underlying cash flow and is a composable source of dollar-denominated yield built for onchain markets. **Loopscale brought OnRe Finance’s ONyc into lending markets, growing OnRe’s total value locked (TVL) and providing ONyc holders with means to access leverage and unlock liquidity for their tokens**. ## The implementation With Loopscale, holders can use ONyc both as collateral for borrowing and as an asset to lever by [Looping](https://docs.loopscale.com/using-loopscale/loop) (recursively borrowing against itself). ONyc is minted and redeemed through OnRe, while Loopscale’s KYB-verified application enables direct minting for ONyc Loops. This setup provides a compliant framework for issuance and keeps user access fully permissionless. **Direct RWA minting**: OnRe mints RWA tokens directly to Loopscale. New deposits instantly become collateral and boost OnRe’s TVL, without AMM liquidity or slippage caveats. **Order-book lending efficiency**: Loopscale’s [order book model](/posts/modularlending) directs rewards to where they create depth, achieving higher TVL per dollar of emissions compared to pool-based systems. **Permissioned liquidation with NAV pricing**: Loopscale serves as the exclusive liquidator, allowing collateral to be priced on net-asset or redemption value instead of volatile on-chain quotes. If market prices deviate, Loopscale can redeem directly with OnRe, ensuring orderly resolution and lower risk. ## The outcome Users deposited **3.6M ONyc** as collateral for Loop (leverage) strategies, taking on an average of 3.7x leverage and earning an 11.99% APY. At the same time, more than **\$4.0M USDC** flowed into the USDC OnRe Vault to supply borrowable liquidity, giving traders the depth to borrow against ONyc or loop their positions. As a result of these two products, **Loopscale has become the largest minter of ONyc, responsible for roughly half of all issuance to date, driving a 15% increase in OnRe’s total value locked in the first month.** ## Why it worked Most lending protocols rely on pooled liquidity and utilization-curve rates, which restrict collateral options and force issuers to overspend on early incentives. Loopscale’s order-book architecture enables live price discovery and precise leverage control, so incentives flow where they add real depth and risk stays predictable. This design also [lowers barriers for new asset classes](/posts/flexappeal). Yield-bearing tokens, RWAs, and other novel forms of collateral can list and attract liquidity without heavy bootstrap campaigns or rigid pool structures. For OnRe, that meant minting reinsurance-backed RWAs directly into Loopscale's ONyc Loop, scaling quickly without the limitations of incumbent lending protocols, both essential for regulated institutional capital. ## Looking ahead OnRe’s first vault shows that real-world yield can scale on-chain without compromising compliance or efficiency. With Loopscale as the foundation, new RWA strategies—from reinsurance to broader institutional credit—can launch natively on Solana and integrate smoothly into DeFi. # Post-Mortem: PT Collateral Pricing Incident Source: https://blog.loopscale.com/posts/postmortem ## Summary On April 26, 2025, Loopscale was targeted in an attack that exploited the protocol’s pricing logic for RateX-issued tokens. By spoofing the RateX PT market programs, the attacker was able to take out a series of undercollateralized loans, resulting in the unauthorized outflow of 5,726,724.97 USDC and 1,211.4 SOL from the USDC and SOL Genesis Vaults. All funds were subsequently recovered following negotiations. We take full responsibility for this incident and deeply regret the impact it had on our users. The exploited code path was deployed as part of a new integration with RateX and had not yet undergone a formal third-party audit. This was a clear failure in our review and deployment process. Going forward, no program code will be deployed without external review. Additional security measures are detailed in [Security Improvements](#Security-Improvements) below. We want to extend our sincerest gratitude for the critical support of partners across the ecosystem. In particular, we want to thank [Jonathan](https://x.com/claudijd) from [Asymmetric Research](https://www.asymmetric.re), [Sec3](https://www.sec3.dev), the entire [SEAL 911](https://www.securityalliance.org/seal-911) team, especially [Nick](https://x.com/bax1337), [pcaversaccio](https://x.com/pcaversaccio), and [Tay](https://x.com/tayvano_), XJ from [Peckshield](https://peckshield.com), [Robert](https://x.com/NotDeGhost) and [Renato](https://x.com/GSfilatino) from [OtterSec](https://osec.io), and [Francesco](https://x.com/francescpicc) from [Almanax](https://www.almanax.ai). We’re also deeply thankful to our users for their continued trust and patience as we work to restore full protocol functionality. ## Exploit Analysis The exploit stemmed from an incomplete validation of the RateX program used to price RateX principal tokens (PT tokens). The vulnerable code was introduced on March 27 as part of an upgrade to support RateX collateral markets. [RateX](https://rate-x.io) implements each of its markets as a standalone program exposing a `get_pt_price` instruction. Loopscale relies on this instruction's output via cross-program invocation (CPI), in conjunction with Pyth oracle feeds, to calculate collateral value. While the Loopscale protocol enforced program validations for Exponent PT tokens and RateX PT Loops, it failed to extend the same checks to non-Loop borrows collateralized by RateX tokens. This gap allowed the attacker to deploy a malicious program that spoofed the interface of a valid RateX market. The program returned an artificially inflated PT exchange rate via `get_pt_price`, enabling the series of loans that effectively bypassed health checks. This was a targeted technical exploit of a specific integration path, not a failure of Loopscale’s economic model or protocol architecture. The core order book logic and vault mechanics functioned as intended and were not compromised. ## Incident Timeline |
Time (UTC)
|
Activity
| Transaction(s) | | :------------------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | April 26 12:51 PM | Attacker swaps Monero for SOL to fund Wallet 1 ([84dz...dA4V](https://solscan.io/account/84dzVMA58eStQZSMLBn4pmhmeTZ13ub8HfF1BYxXdA4V)) via ChangeNow. | [5gUk...MkEb](https://solscan.io/tx/5gUkHPyAoKu7i2TmrWaQT4RxjV3wvY4XnH3VuyUzGZQJMZGsDb4KrZSQJez6sqWspNB8xiCsmvrDkFDCj6oDMkEb) | | April 26 1:16 PM - 1:34 PM | Attacker swaps SOL for USDe and kySOL and mints PTUSDe and PTkySOL via RateX. | [5EFA...Te87](https://solscan.io/tx/5EFAJ73bkRnoKrwGHzTb14Kxc3RQukE26gTS3gA8KhQnBtWHQA6soHSa2L6aLs8m2WjcWQTyy2kMUqMWtFCdTe87), [YLye...MctE](https://solscan.io/tx/YLyed8HLXPwrmLqXXvWpMm8Ai54s4ebmVMdYX4QssqwMBjanbBR7wgYRuxuHpRUB1FVqStXF6PpfBxLv2usMctE), [3tcp...TNno](https://solscan.io/tx/3tcpmZcFGpC8F8PQcEKutMPGpTUrc6KkhQQeDZMhfL44WmTqd44F7FQodhuQALMgNG6Y6oiJ5e48p9DTkAQRTNno), [5ckr...BMNh](https://solscan.io/tx/5ckrK68tqQJus7RG7sNiBYJ8VKGhR1oPXQ5ix54231qzc5UMMzZNW3896fCc7Dp8hPiSNvLzHLhsM8cPABMdBMNh) | | April 26 1:35 PM - 1:39 PM | Attacker transfers SOL, PTUSDe, and PTkySOL to Wallet 2 ([C1Qy...prYT](https://solscan.io/account/C1QyPYoWQiueqhtLeaG5Nhkv1LJ8oweBNCbfGJ3LprYT)), the exploit wallet. | [3616...Fi4e](https://solscan.io/tx/3616VmbzwcVtNruSJSV9Rs6nmD4Aa2uSJCKpcY5GQNC7qptT8T2MpLPr5veqtC4aJmFmbMoXmeoCfMuoj3PHFi4e), [2y5n...XgSd](https://solscan.io/tx/2y5nHnhVtfKbTv3f9u6rgX8aWpxRj5JtDy6YyvfCPcPXt5L8M4kHCbCAszTYZR1AZNeTEPtRzMvmd2BKdEPJXgSd), [hAyB...Pkh5](https://solscan.io/tx/hAyB2qfW8usaGe7po9ZxssWndqYzZEyzpQEP2XzNBFzKKoR44dofQJwmicA5xHcH46F39uG5XimdJWdTuhQPkh5) | | April 26 2:15 PM | Attacker swaps Monero for SOL to fund Wallet 2 via ChangeNow. | [7UZN...y65M](https://solscan.io/tx/7UZNXH1BnZyUAVb9hEwmDFqcNKhFcxfUdEP8JM72XETPcMKURaCNFbFjBU8q7PawxCLG8qSnUTqEGN1DVtCy65M) | | April 26 2:44 PM - 3:17 PM | Attacker deploys test program ([8iHA....oMyk](https://solscan.io/account/8ihAMgWEtAnojWawGVcBVpxVRSfxBFuVqDw5wQE9oMyk)) and exploit program ([BdAD...KRbK](https://solscan.io/account/BdADVdaAdDbFo85EP2ynEanQQMDDJgPyTZmAKtaHKRbK)). | [c5fv...yH2n](https://solscan.io/tx/c5fvaAJHsepMMSKvSWvf5qCSAqxZJMKzxr9ECL3h6gLLbYjewyR4yK8SBxFZVEBiP37FeumRfZBDYkXz1WZyH2n), [5Lrg...7Xxc](https://solscan.io/tx/5LrggCUycXpiQYQvL9hpHq5oFikwVtJBTF1QRysuM2NbormWThUFfKMMn7DDMqigYaSyouymokgzmYEQaxpT7Xxc) | | April 26 3:28 PM | Attacker borrows 1,500,000 USDC. | [2Cti...rRrq](https://solscan.io/tx/2Cti6x4wMw2CCvDwQYa4JvnHZAeQaSu6krAtMnBjx9mxHpr3LTmbRDwZs21fjRiwU2Z5dV4BTJbkjaD7E2mxrRrq) | | April 26 3:29 PM | Attacker borrows 1,500,000 USDC. | [55dm...eH5Q](https://solscan.io/tx/55dmSjy4Whjfqbfp8LwRduzTwz1fDeLu6aj8STqDXeiezZneNJwr2XiX3Qy7yWb2G2DL3d991ACD6sejNkQ7eH5Q) | | April 26 3:30 PM | Attacker borrows 1,500,000 USDC. | [Xxks...beub](https://solscan.io/tx/XxksDRzx1KFVJpUzVCFDjRCXJcUzwbdTRYPmHQzZwmzYS6DptV8qAJxU2CGAXhxyPvWLPitFCAuPA6ASBG5beub) | | April 26 3:30 PM | Attacker borrows 1,226,725 USDC. | [2SkC...F2RJ](https://solscan.io/tx/2SkCkmX2Q8R7W7RDzgfc6ZFCmYgehmENw72sgTQLfNLHGupNdPDeNkW6S7qCNgYtintFcxhkBCsyf81XA9NSF2RJ) | | April 26 3:31 PM | Attacker swaps 5,726,725 USDC for 38,261 SOL via Jupiter. | [bR4Y...Lz7H](https://solscan.io/tx/bR4YweLndnAAUX3DxwSfSqQNZcTgjdhnamLg35hF7tKzMnTPEzHvyAyQJtsAooKwgXY68tBuZzptc2R4aCqLz7H) | | April 26 3:32 PM | Attacker borrows 1,211.4 SOL. | [3Lck...ZvGP](https://solscan.io/tx/3LcknBmavGUAMJvNMAc5xwsLqFaKs3vfguWsoTNYzpBv76B4ChiagitSHogpdMwWZpuKDV3a62uT4wXn2SvLZvGP) | | April 26 3:37 PM | Attacker transfers 39,474.5 SOL to Wallet 3 ([4Qsq...HgCV](https://solscan.io/account/4QsqugQcrCuSVzU9WjeLDoR6HaaSZtMEZr5JCyxwHgCV)). | [4uG4...igN7](https://solscan.io/tx/4uG4fVWmxXuZXNxw2BLWfTFVFbU4aYoqJ6PTntcD2dvRG9wL8csJraZ1MXYK8HjLWp5Wc6k3bwSfgcK861KTigN7) | | April 26 3:47 PM - 4:23 PM | Loopscale disables new borrows from Vaults, disables new borrows from the protocol, and then pauses all protocol functionality. | | | April 26 3:52 PM | Loopscale creates war room with SEAL 911 via Telegram. | | | April 26 4:55 PM - 5:08 PM | Attacker swaps 10 SOL for ETH to fund Wallet 4 ([0x05...038c](https://etherscan.io/address/0x05ff141699ae8D56B344550d893cFdAd4C60038c)) via ChangeNow and bridges a total of 15,000 SOL via Wormhole. | [3vLa...n8iJ](https://solscan.io/tx/3vLaLf1inn2UX2uz6mnWa8ErTru3HSidBp5mzFJ9wi9bHVKezotkiedg5VDi7aYRjJwvevTTprxDwxDyAQgan8iJ), [4KHQ...1QU2](https://wormholescan.io/#/tx/4KHQphm8CSS9YxgDiKgAfsLmTceFLYD8f9JEiaoZZRi7RQxfL3kPY4MD9GXuazeG6eyebChuupkQBA93ufh41QU2), [Fcaf...ahTH](https://wormholescan.io/#/tx/FcafMbKHC4e1bArfsWJTDDgYtqktWTLeptmBnpGpSKZTdkSFYUJqtffwmvV1PQTX7Vfxp1EjHdjWMFcw1VWahTH) | | April 26 5:10 PM | Attacker initiates bridge of 20,000 SOL to Wallet 4 via Wormhole. | [5Xzy...Gm1e](https://wormholescan.io/#/tx/5XzyPcvEL8JRD4B8rZcQxKCAi3FtxFYmGBjaWw5rSAu3ET3Z59RHuJafSJebeazZ3xDZDj9Qum8EubRchzN1Gm1e) | | April 26 8:15 PM | Loopscale re-enables loan repayment and close-loop functionality. | | | April 27 4:38 AM | Attacker transfers 15,000 WSOL and 0.5 ETH to Wallet 5 ([0xc9...7Fe8](https://etherscan.io/address/0xc9d30E520Af584d0867FfC71DE162f1C09987Fe8)). | [0xed...8b85](https://etherscan.io/tx/0xede80aa730eb03f27fa0b3d7b3a58b7c6c0f03c758c240bbaa4a23e5a2418b85), [0x6e...2150](https://etherscan.io/tx/0x6e72e88eadc23704f7455df9f5e0fc0ba1564947e818f35af11bb5ff9ec12150) | | April 27 10:12 AM | Loopscale sends an on-chain message to Wallet 4. On-chain and email communications follow. | [0x6d...d646](https://etherscan.io/tx/0x6dcbf6de26631d18eed84410e06741a1940e7f1fc7b7660bf82796d4d133d646) | | April 27 6:54 PM | Attacker returns 5,000 SOL to Loopscale ([0xc4...5329](https://etherscan.io/address/0xc44196101491bd4e31905d0fe9027d68ad5a5329)). | [0x4a...72f0](https://etherscan.io/tx/0x4a5772b6249e080235c473558559156a3c97017f7af6be6aff0d5a95b5dc72f0) | | April 28 6:18 AM | Attacker returns 10,000 SOL to Loopscale. | [0x17...95ce](https://etherscan.io/tx/0x17f799be2c200473822afd8175fc1adc281ab361d50d98ebf9e2fd08555595ce) | | April 28 7:03 PM | Attacker returns 4,463.95 SOL to Loopscale ([stnD...JH4j](https://solscan.io/account/stnD32KEQkgA7LTVNprUPBWXt86fstt1sdUiwUUJH4j)). | [66Yq...axei](https://solscan.io/tx/66YqTDPxYukrPtwfPbXv3utHKi2KfqvXXf3De3Km5eQ9GjSbY2kYe1yBk4zVj371fH8BjT9CCPqv4w4wQXnRaxei) | | April 29 7:16 PM - 7:33 PM | 20,000 SOL bridged transfer settles on Ethereum. Attacker returns settled funds, completing fund recovery. | [0xda...a110](https://etherscan.io/tx/0xda91501e4e91d05ef17c28079083a7c471ab1c3d59dcf1020a858d539b1ea110), [0xa9...7860](https://etherscan.io/tx/0xa92ff591cad42bd2886ef5040e702c8540ed7c302d7b507dbf237d0353407860) | | April 30 7:11 PM | Loopscale re-enables Advanced Lending management/withdrawals. | | | May 8 2:00 PM | Loopscale re-enables vault withdrawals following additional code reviews. | | ## Impact The exploit impacted the USDC and SOL Genesis Vaults, leading to temporary losses of 5,726,724.97 USDC across 3,126 depositors and 1,211.4 SOL across 2,047 depositors. **All funds were fully recovered through coordinated efforts with ecosystem partners.** Loopscale is reimbursing a \$29,000 discrepancy caused by the attacker swapping USDC at less favorable rates than those at which the funds were later reacquired. **No user deposits incurred any loss.** The vulnerability was limited to loans backed by RateX principal tokens. No other vaults or advanced lending positions were affected. Existing safeguards, including market isolation, collateral segregation, and liquidity buffers, helped contain the impact. In response, protocol functionality was paused. Loan repayments and closure of Loops were re-enabled on April 26, followed by Advanced Lending position management/withdrawals on April 30. Vault withdrawals were enabled today, May 8, with [24-hour per-user limits](https://x.com/Loopscale/status/1917709358529421496). Borrowing and looping remain paused pending the completion of Sec3's audit and security improvements. ## Response & Remediation ### Immediate Mitigation Several existing protocol safeguards helped contain the impact of the exploit: * **Market Isolation:** Eligible collateral configurability ensured no other vaults or Advanced Lending positions were affected. * **Non-Rehypothecated Collateral:** Per-loan collateral segregation ensured the safety of borrower collateral deposits. * **Liquidity Buffers:** Withdrawal buffers limited the funds at risk. * **Emergency Protocol Pause:** Core functionality was paused shortly after the exploit occurred. While these measures helped reduce the scale of the incident, they were far from sufficient. Future releases will include significantly stronger safeguards to prevent similar failures. ### Fund Recovery Following the exploit, Loopscale engaged SEAL 911 to coordinate incident response. Over the next 12 hours, we shared exploit details with Wormhole Network contributors, notified centralized exchanges and swapping services to restrict off-ramping or swapping, and escalated the case with law enforcement. Due to the sensitive nature of the incident, we cannot comment on the investigation any further for now. Communications with the attacker were initiated via an on-chain message the morning of April 27, leading to the full return of misappropriated funds over the next 48 hours. ### Vulnerability Patch To close the vulnerability, the exploited check was updated to enforce strict validation of RateX program IDs during loan health checks. All related instructions were reviewed to ensure reliability and integrity of program inputs. These changes eliminate the exploit vector by ensuring that only validated program accounts can be used during loan execution. **The patch was reviewed by Sec3 and two additional third-party security auditors.** ### Security Improvements To strengthen protocol security and prevent future exploits, Loopscale is introducing a comprehensive set of technical and operational safeguards: #### Core Protocol Safeguards * **Expanded Audit Coverage:** Our ongoing engagement with Sec3 covers the full program library, including all collateral pricing integrations. Additional audits are scheduled to be completed in the coming months. * **Bug Bounty Program:** Following the completion of additional audits, Loopscale will launch a formal bug bounty program. * **Progressive, Feature-Specific Audits:** No program functionality or updates will be deployed without a formal third-party audit. * **Operational Monitoring:** While Loopscale has a number of monitoring and alerting systems in place, additional weekly reviews of failed transactions, backend logs (tracked via Sentry), and anomalous RPC activity are now formalized as operational procedures. * **Program Access Controls:** Market, vault, and oracle parameter updates are now gated by multisig authorization as an additional safeguard against unauthorized changes. These measures reflect a broader shift toward security-first development we are committed to sustaining across all future releases. #### Program-Level Vault Risk Controls In the next protocol release, Loopscale will expand risk management functionality for Vaults and Advanced Lending Positions to mitigate systemic risks, manage liquidity flows, and contain abnormal activity. This release will include: * **Borrow, Supply, and Withdrawal Caps:** Time-based and total limits * **Collateral Exposure Limits:** Constraints on how much can be borrowed against a single asset to reduce concentration risk * **Loan Approval Thresholds:** Manual and delayed approval mechanisms for large loans * **Withdrawal Queues:** FIFO processing for transparent and orderly withdrawals during stressed market conditions All parameters are optional and configurable per-vault by the Vault Curator and per-position by [Advanced Lending](https://docs.loopscale.com/using-loopscale/advanced-lend) depositors. Future Vaults curated by Loopscale will adopt a conservative risk profile leveraging this functionality. #### Temporary Instruction Co-Signing To reinforce protocol integrity ahead of additional audits, Loopscale has introduced a temporary security measure requiring all instruction calls to be programmatically co-signed by Loopscale. This means every transaction must be constructed and validated by our backend sever before execution, adding a layer of off-chain security on top of the standard program logic. This measure directly mitigates the vector used in Saturday’s exploit, whereby malicious programs were able to invoke our program instructions with unverified data. Importantly, users remain fully in control of their funds. Our backend cannot initiate transactions independently. This will serve as a short-term safeguard until pending audits are completed. ## Looking Ahead We sincerely apologize for the disruption this incident has caused our users and partners. We recognize the importance of trust in the DeFi ecosystem, and we are committed to restoring it through transparent, verifiable measures. This event has surfaced areas for operational and infrastructural improvements. In response, we are implementing safeguards and processes to make Loopscale more resilient and secure going forward. The re-enablement of full protocol functionality will be rolled out in stages, with user safety and confidence as our top priorities. We’ll be sharing more about the path forward soon. Thank you again to the community for your continued support and contributions. Your trust is not taken for granted. We remain committed to rebuilding trust, building a stronger Loopscale, and pioneering the next generation of on-chain credit. # Loopscale Scales Price Infrastructure with Pyth Source: https://blog.loopscale.com/posts/priceinfra Loopscale uniquely [supports lending markets across over 100 assets](/posts/flexappeal) on Solana, from Orca Whirlpool LP positions to native-staked SOL. Powering these markets requires price infrastructure that is both reliable and flexible across a wide range of asset types. This infrastructure is made possible through our integration with [Pyth Network](https://pyth.network). ## Role of Oracles in Lending Every transaction on Loopscale relies on accurate pricing. Loan-to-value ratios, liquidation thresholds, and risk management are all tied to the integrity of the price feed. Loopscale uses both spot and exponential moving average (EMA) prices from Pyth, applying each based on the type of transaction being performed. For live loan activities (like borrowing more, withdrawing collateral, or modifying an LP position) Loopscale uses **EMA pricing**. This helps protect against price manipulation by smoothing out short-term volatility. A user can't exploit a temporary spike or dip in price to take out an unhealthy loan, because the EMA will lag slightly behind the spot price and reflect a more stable average. In contrast, Loopscale uses **spot pricing** for liquidations to reflect current market conditions as closely as possible. During sharp market moves, relying on a slower-moving EMA could result in stale prices that lag behind the market. This could make it harder to liquidate positions in time or at a fair value, increasing risk for lenders and liqudiators. Dynamic price infrastructure helps Loopscale maintain protocol safety while still enabling responsive, composable markets. ## Pricing Across Asset Types Loopscale supports a broad range of tokens and financial primitives. While Pyth serves as base oracle for all digital-native assets on Loopscale, Loopscale applies additional logic depending on the asset class. For standard tokens like USDC, SOL, wBTC, JUP, and BONK, Loopscale uses Pyth price feeds directly. These are straightforward assets with deep liquidity and reliable oracle support. For liquid staking and restaking tokens like jitoSOL or jupSOL, Loopscale reads the underlying stake pool state to determine how much native SOL each token represents. We then apply the corresponding Pyth feed to value the base asset. This allows Loopscale to accurately price derivative assets while adapting to changes in stake pool composition over time. LP tokens from AMMs like Orca Whirlpool, Raydium CLMM, and Meteora DLMM are handled by parsing on-chain position data. Loopscale directly reads the token balances in the LP account, then fetches individual prices using Pyth to calculate the total position value. Prices update dynamically as positions are modified. LTV and liquidation thresholds are based on the minimum threshold between the assets in the pair. For perpetual LP tokens from protocols like Flash (FLP), Adrena (ALP), and Jupiter (JLP), Loopscale performs a on-chain read of the pool’s composition and assigns value to each balance using Pyth feeds. Risk parameters depend on this pricing as well as each pool’s redemption mechanics, protocol design, and underlying asset liquidity. Principal tokens from platforms like RateX and Exponent are priced by first determining their exchange rate to the base asset based on maturity or expiry. Loopscale then applies a discount to reflect the token’s pre-maturity value and converts that into a USD-denominated price using Pyth. This ensures that fixed-term tokens reflect both their real-time market price and their time-based value accrual. ## Built for Scale Loopscale’s price infrastructure is designed to be modular, ensuring composability for new oracle providers and emerging asset classes. We integrate directly with Pyth for high-frequency, low-latency feeds. These feeds provide the foundation for our price infrastructure, which support a growing range of assets and risk models. By combining on-chain reads with this real-time pricing from Pyth, Loopscale can safely support a diverse range of asset classes and respond quickly to market changes. # Loopscale Q1 2026 Recap Source: https://blog.loopscale.com/posts/q12026recap ## # Loopscale Q1 2026 Recap Following public launch and rapid growth in 2025, Loopscale continued that trajectory in Q1 2026, with deposits reaching new highs, the protocol's collateral coverage expanding across institutional and DeFi-native assets, and a number of major wins: * 141M total deposits, 66M lending deposits * ONyc grew from \$15 to 23M+, now 43% of the total market * PRIME launched with Hastra, hitting \$10M in its first weeks * syrupUSDC reached \$15M within a month of launch * Solstice's USX launch surpassed \$15M in deposits * Loopscale App live on the Solana dApp Store, driving a 50% increase in DAUs * PRISM launched, aggregating Multiliquid, Fission, and Securitize into a unified router for permissioned RWAs Totaldepositsmay Loopscale was built on a thesis: order books are the only credit structure that scales onchain. Pool-based lending sets one rate for all participants and assumes every loan looks the same. Most credit markets and products don't work that way. Permissioned RWAs, foreign currency stablecoins, and native DeFi yield each require duration, custom terms, and rates priced to specific risk. Q1 was the largest test of that thesis to date. The protocol's collateral coverage expanded across institutional RWAs, local-currency stablecoins, and crypto-native yield assets, and growth concentrated in exactly the markets pool-based lending struggles to serve. Security is a prerequisite to accomplish this at scale. Loopscale made meaningful strides towards further hardening technical and operational security this past quarter, including the completion of three additional protocol audits, continuing the work that lets issuers, allocators, and users deploy into Loopscale with confidence. ## Real-world assets are the largest collateral category on Loopscale Real-world assets crossed roughly 40% of total deposits in Q1, marking a rotation of capital and users away from speculative deployments toward institutional, yield-focused strategies. Growth was distributed across a number of institutional issuers. ### OnRe The OnRe market on Loopscale grew to $53M, with ONyc deposits up 50% to $23M. ONyc is a yield-bearing dollar asset that gives holders direct exposure to reinsurance yield. Loopscale users can borrow USDC or USDT against ONyc, Exponent PTs, and Exponent LPs to open leveraged positions. Loopscale recently introduced longer durations on ONyc markets, letting users fix their rate over one-week and one-month durations. Fixed-rate and fixed-duration products demonstrate a structural advantage of order book lending, enabling onchain markets to include time as a variable in credit pricing while borrowers holding RWAs access greater predictability around costs and returns. The OnRe USDC Vault remains one of the highest-yield Vaults on Loopscale, delivering 7.7%+ APY including rewards and points incentives. ONyc Loopers earn up to 17% APY on ONyc/USDC. ### PRIME Hastra's flagship RWA yield token launched on Loopscale across two markets in Q1 and reached \$10M in deposits by quarter end. PRIME is backed by Figure's HELOC lending operation, one of the largest non-bank HELOC originators in the US, bringing a category of historically inaccessible consumer credit yield onchain. Users can Loop PRIME against USDC and USDG on Loopscale's order book. ### Securitize ACRED on Loopscale grew to nearly 95% of all ACRED minted on Solana by the end of Q1. ACRED is Apollo Credit Group's tokenized private credit fund, issued by Securitize. The integration pairs institutional-grade RWA collateral with permissionless stablecoin liquidity: ACRED holders can borrow against their position rather than liquidate to access cash, and lenders earn yield priced to the specific risk of the underlying collateral. ### AlphaLedger Loopscale's first integration with a licensed broker-dealer interface launched in Q1, enabling permissioned borrowing against tokenized assets through AlphaLedger's institutional platform. This integration creates a path for participation from institutional borrowers who require broker-dealer custody and compliant access onchain credit through familiar infrastructure. ### PRISM Loopscale introduced PRISM (Permissioned RWA Instant Settlement Market), combining regulated atomic minting via Securitize with instant NAV-based redemptions via Multiliquid and Fission, routing them through a single contract for instant entry and exit on permissioned RWAs. The problem PRISM solves is structural. RWAs are a \$25B market with almost no secondary liquidity. Tokenized funds hold billions in AUM and record fewer than 100 monthly transfers. The constraint isn't issuance, it's composability. Most tokenized funds settle on T+1 to T+3 timelines, with some settling on quarterly redemption cycles. Those asynchronous mechanics break the atomic execution that onchain lending and leverage require. PRISM aggregates settlement liquidity for permissioned assets, creating distribution infrastructure for every permissioned token on Solana. ## New assets accelerating growth RWAs were the largest source of growth in Q1, but far from the only one. Stablecoin lending and crypto-native collateral both expanded meaningfully with demand driven from partners like Solstice and Maple. ### Solstice Solstice markets continued to grow on Loopscale, passing \$15M in deposits alongside the introduction of new USX products. USX is a stablecoin issued by Solstice, paired with eUSX, a tokenized claim on Solstice's YieldVault that appreciates as yield accrues to the vault. On Loopscale, USX holders can lend USX directly or borrow against a diverse range of collateral. Loopers can also build leveraged positions on top of Exponent markets: Looping PT-USX with USDC and USX collateral earns up to 23.58% APY, and Looping PT-eUSX with USX collateral earns up to 22.34% APY. Users with Exponent LP positions can also borrow against ELP-eUSX, putting LP exposure to work without unwinding. As part of Solstice's Season 2, lending, borrowing, and Looping USX assets on Loopscale earn 1-5x Flares. ### Maple Finance Crypto-collateralized borrowing and Looping for Maple Finance's syrupUSDC went live on Loopscale, hitting \$15M in deposits within a month of launch. Maple is an institutional asset manager running overcollateralized lending to crypto-native firms, with syrupUSDC as the permissionless wrapper that passes those yields through to DeFi. ### Local stablecoins Most of the world doesn't transact in dollars, but most of DeFi assumes they do. With elevated USD volatility, the case for DeFi participation without dollar exposure only gets stronger. Loopscale expanded foreign currency stablecoin coverage expanded across multiple regions through partnerships with leading local issuers. Q1 marked the launch of EUR, GBP, BRL, and MXN-denominated yield products with Loopscale becoming the largest venue on Solana for each. These are early markets in a category that should grow meaningfully as local stablecoin issuance does. ## Reaching new users on Solana Mobile The Loopscale App went live on the Solana dApp Store, driving a 50% increase in daily active users. Loopscale now sits alongside 100+ native Solana dApps, giving Seeker users fixed-rate lending and competitive yields across hundreds of assets from anywhere. Mobile distribution powered by Solana Seeker creates the next generation of DeFi users, opening real DeFi access to anyone in the world. ## Looking ahead to Q2 Q2 is already underway with three new primitives already shipped in the first weeks: * Deposit-Backed Lending with Jupiter's JUICED * Vault Lending Positions as Collateral, supporting USDC and SOL Vault positions * Loops 2.0, the largest upgrade to Looping the protocol has shipped More products and assets are already in the pipeline. A preview of what's coming: * **More RWAs:** Expect new products across tokenized equities, yield-bearing assets, and collectibles, enabling tranched access via Loops and lending. * **Managed products:** Strategy vaults remain one of the strongest growth vectors across the ecosystem, with several new vault products launching on Loopscale alongside multiple partners. * **Local stablecoins:** We will expand our offering of foreign currency yield products, enabling global access to currency risk-isolated DeFi yields. * **Security improvements:** Loopscale has a number of audits and security-focused protocol improvements underway for the quarter. Q1 closed with our broadest collateral coverage across markets to date, spanning permissioned RWAs, foreign currency stablecoins, and native DeFi yield. Q2 keeps building on it with new asset categories, new credit primitives, and a continued security focus across every market. Thanks to the partners, asset issuers, and users who made Q1 a defining quarter for Loopscale. # Loopscale Q2 2025 Recap Source: https://blog.loopscale.com/posts/q22025recap Loopscale is closing out Q2 2025 with substantial progress since [going live in April](/posts/launch). Now three months post-launch, over \$62M in assets are currently deposited to the protocol, with 4,574 individual active loans and more than \$1 billion in cumulative borrowing volume. As the first mover in building lending markets for new token primitives, Loopscale’s [modular, order book-based architecture](/posts/modularlending) has proven its value by delivering competitive rates, diverse Loop products, and asset integrations that lenders, borrowers, and loopers have been seeking in the rapidly evolving Solana ecosystem. Let’s explore what we shipped in Q2 2025. ## Expanded supported assets for Loops and collateral Loopscale supports [the most assets of any lending protocol on Solana](/posts/flexappeal). Q2 saw significant expansion in supported tokens for collateral and looping. * **Principal Tokens**: We shipped support for PTs (Principal Tokens), which are fixed-yield assets from [Exponent Finance](https://exponent.finance/) and [RateX](https://rate-x.io/), amassing millions of value locked in PTs via Loops and collateral. * **Incentivized LST Loops**: We’ve launched numerous Liquid-Staked Solana Loops, providing superior leveraged Solana staking returns. Our observation: [new LSTs grow faster when they list on Loopscale](https://x.com/marygooneratne/status/1938301501308301612). * **Yield-bearing tokens**: Loopscale is purpose-built for yield-bearing tokens, like [Fragmetric's](https://fragmetric.xyz/) fragSOL and fragBTC, [Maple Finance's](https://maple.finance/) syrupUSDC, and [Yala's](https://yala.org/) YU. * **Flash.Trade FLP Loops**: We introduced leverage for perp LPs supporting different asset classes, whether crypto or synthetic RWAs, in collaboration with our friends at [Flash](https://flash.trade/). * **Tokenized Stocks**: Our rapid support for [xStocks](https://www.kraken.com/xstocks) demonstrates the power of Loopscale's architecture in unlocking value for emerging primitives. More on this front are coming soon! Each new asset validates the core advantage of modular lending markets: *markets can immediately form free of the liquidity requirements and capital inefficiency that constrain pool models*. ## The best place to park your SOL Throughout Q2 and continuing today, the [SOL GENESIS Vault](https://app.loopscale.com/vault/U1h9yhtpZgZsgVzMZe1iSpa6DSTBkSH89Egt59MXRYe) has consistently yielded 10%+ returns on SOL, driven largely by high borrowing demand for Loops, particularly LST (Solana Liquid-Staked Token) Loops. Yields are also boosted by additional rewards provided by our LST partners. With Loopscale’s order book model, lenders earn the full borrow rate without the spread dilution inherent in pool-based protocols. ## New features and UX improvements In Q2, we shipped many UX improvements based on community feedback: * [A better Loops page](https://app.loopscale.com/loops) for discovering the right leveraged yield opportunities. * More transparent Loop management for existing positions, with a particular focus on better information for opening and closing positions. * PnL charts to better portray returns from Loops. This has proven particularly useful for PT Loops! * Refreshed [Points](https://app.loopscale.com/points) and [Portfolio](https://app.loopscale.com/portfolio) pages. * Alongside our public launch, we unveiled a refreshed brand identity. Shout out to [@saniaio](https://x.com/@saniaio) and [@VectorDAO](https://x.com/@VectorDAO) for the excellent work! We also announced Sponsored Vaults, of which we expect the first to go live early in Q3 in order to provide targeted borrow liquidity for certain collateral assets. ## A continued dedication to security Our protocol suffered [a security incident on April 26th](https://blog.loopscale.com/posts/postmortem). This resulted from incomplete validation in a newly deployed integration — a clear failure in our review process. **All funds were recovered within 48 hours through coordinated ecosystem efforts**, and the protocol resumed normal activity by early May. Stemming from this, Loopscale underwent an extensive security overhaul: * Borrow and supply caps to limit exposure concentration * Collateral exposure limits for individual assets * Comprehensive audit coverage with Sec3 and additional third-party auditors * **Progressive, feature-specific audits for all future program updates**. Moving forward, no program functionality will be deployed without formal third-party review — a standard we're committed to maintaining across all releases. With active users and loan volume now above pre-incident levels, we're excited to be back on track and focused on what's coming next. ## Looking ahead to Q3 The order-book thesis is gaining broader acceptance. [Morpho’s recent shift to a similar architecture on Ethereum is a notable signal](https://x.com/marygooneratne/status/1933582618437488819). We’ll keep pushing the model forward, focusing on security, capital efficiency, and rapid support for the next wave of assets. Our immediate goals are as follows: * **Be the first lending market for any new Solana asset. Add more asset support: PT tokens, more xStocks, RWAs, and beyond**. * Continue to build out Vaults — via both external curators as well as Sponsored Vaults. * Refine product UX, making Loopscale’s order book-based lending as easy to use as traditional lending protocols. * Undergo an additional protocol audit and continue to build security features into Loopscale. And finally: we're looking for a Product Designer and Senior Frontend Engineer to [join our NY-based team](https://careers.loopscale.com/). Come help us build the future of onchain lending! Loopscale’s next phase is already in motion, and we’re grateful to build it alongside our community. A huge thank you to our community and partners for your continued support! # Loopscale Q3 2025 Recap Source: https://blog.loopscale.com/posts/q32025recap In Q3, Loopscale established itself as Solana’s defining modular, order book-based lending protocol, reaching over \$100M in deposits, \$38M+ currently borrowed, and 4,000+ active loans six months after launch. In this recap, we’ll explore what’s driven this growth: integrations launched, product improvements shipped, and appearances in media and research across the wider DeFi ecosystem. ## Assets grow faster on Loopscale Many assets launched on Loopscale in Q3, from both new entrants and established protocols. We introduced real-world yield to Loopscale alongside other high-performing crypto-native tokens. The outcome: **Loopscale is the best place to scale new assets on Solana**. Here's what went live: **OnRe Finance**: [Loop and lever reinsurance yields with ONyc](https://app.loopscale.com/loops/onyc-usdc). In tandem, the [OnRe USDC Vault](https://app.loopscale.com/vault/7PeYxZpM2dpc4RRDQovexMJ6tkSVLWtRN4mbNywsU3e6) was launched, purpose built for providing borrow liquidity to ONyc collateral for Loops and borrowing. [Loopscale has since become the largest minter of ONyc, responsible for roughly half of all issuance to date](https://blog.loopscale.com/posts/onre). **Etherfuse**: [Loopscale added TESOURO](https://app.loopscale.com/loops/tesouro-usdc), Etherfuse's tokenized Brazilian government bonds. This marked another step into real-world assets, giving users leveraged exposure to sovereign debt yields via Looping as well as the opportunity to use this real-world asset as collateral for borrowing. **Marinade**: Marinade's [mSOL](https://app.loopscale.com/loops/msol-sol) went live on Loopscale, bringing Looping strategies for top-tier liquid-staked Solana yield to users. Strong borrowing demand for mSOL continues to drive attractive yields for lenders to the SOL Genesis Vault. **Hylo**: A newer protocol bringing superior SOL yields and liquidation-free leverage, Hylo now has its hyloSOL, hyloSOL+, and fixed-yield (PT) variations of these assets live on Loopscale. More to come for Hylo, soon! **Adrena**: Loopscale launched the [ALP](https://app.loopscale.com/loops/alp-usdc) (Adrena Liquidity Provider) Loop, bringing triple-digit returns for ALP Loopers thanks to Adrena's ADX incentives on the USDC Vault that powered low borrow rates. One of the most popular Loops of Q3! **Zeus Network**: Bitcoin, on Loopscale, courtesy of our friends at Zeus. The [zBTC vault](https://app.loopscale.com/vault/9WWNCEnjyYedjGDaxy3HwQiy67HvZmFNbNKDbnX7qnRV) has seen great traction on Loopscale, which primarily lends to zBTC-based Loops. **Fragmetric**: [FRAG incentives were added to the JitoSOL vault](https://app.loopscale.com/vault/CnzmsXzfphu7KMbPCGdFZJtwYCUsptvBhqekC2cgj6cY), providing low borrowing rates for JitoSOL-based Loops with Fragmetric assets like fragBTC and fragSOL. This gave lenders an additional layer of yield, while those Looping Fragmetric assets gained better leveraged returns. **Orca**: Loopscale made it possible (for the first time!) to [Loop LP positions](https://app.loopscale.com/loops/orca-solusdc-usdc), beginning with select Orca LPs. Loopscale's team continues to ship new LP Loops consistently — keep an eye out! Each new integration reinforces what we've known since launch: **modular lending markets can support emerging assets faster than pool-based alternatives**. ## Product improvements Alongside new integrations, iterative product improvements to the user experience and backend infrastructure have been core focuses of Loopscale’s development. **Loop Rollovers**: Loopscale users can now roll over Loops for assets with maturity dates (i.e. fixed yield / PT assets from RateX and Exponent), making loop management more flexible and efficient. This streamlines continuing a PT position to the next maturity without requiring users to exit and re-enter loops. **Repay with Collateral**: Users can now repay with the collateral asset (in addition to the typical debt asset), creating more flexibility in position management for Loops and Borrows. **Change Loop Leverage**: You can change the leverage on a Loop without needing to manually adjust debt and collateral amounts. Leverage can be now changed with a single slider in the Loopscale UI. **Loop PnL Improvements**: Loopscale's team has done a fair bit of work behind the scenes to make Loop PnL displays for complex assets more accurate, understandable, and consistent. Users are also now alerted when opening a Loop with an underlying price at a premium, which could lead to higher PnL than expected when opening a Loop. **Adevar Audit**: Adevar Audit: [Loopscale completed another security review in partnership with Adevar Labs](https://docs.loopscale.com/resources/audits), continuing our commitment to progressive, feature-specific audits before any program update. ## Loopscale Media and Research Appearences **Castle Labs** [featured Loopscale in its coverage of evolving lending designs](https://x.com/castle_labs/status/1971228559260717546), reinforcing the growing recognition of modular, order book-based lending markets. [**OurNetwork** featured Loopscale’s lending activity data and insights in their newsletter](https://www.ournetwork.xyz/p/on-362-lending-part-2), showcasing our growth through detailed onchain metrics. [Jack Kubinec](https://x.com/whosknave) of the Lightspeed Podcast brought Loopscale cofounder Mary on to share our vision for onchain credit markets. Loopscale continues to shape the future of DeFi lending. And the broader DeFi community is taking notice. ## Looking ahead to Q4 With \$100M in deposits achieved and integrations spanning LSTs, RWAs, perp LPs, tokenized stocks, and yield-bearing tokens, Loopscale has established itself as Solana's modular credit market. Q4 will build on this foundation with more asset support, expanded vault programs, and continued security audits. We're grateful to our community and partners for making Q3 another defining chapter in Loopscale's journey. See you on the order book! # Loopscale Q4 2025 Recap Source: https://blog.loopscale.com/posts/q42025recap In Q4, Loopscale established its position as Solana's fastest-growing credit protocol, surpassing all-time high total deposits, shipping first-of-their-kind RWA credit products, and proving market fit for order book-based lending markets. Let’s dive in. ## All-Time High Deposits By the end of 2025, \$130M in assets were to the protocol across lending and collateral — and as of this post, this number has already increased to \$147.5M. Total Active Loans sit at \$52.1M. This growth comes alongside continued expansion in active loans and unique users, largely thanks to how Loopscale’s modular architecture provides quick and robust support for new asset launches and RWA products. **As Loopscale grows, so does the Solana ecosystem.** ## Expanded RWA and Tokenized Asset Support Loopscale provides credit markets for both crypto-native and real-world assets, with the latter having grown exponentially on Loopscale over this past quarter. ### ACRED: The First Permissioned RWA Credit Product on Solana In November, we launched the first credit product for permissioned RWAs on Solana, built in collaboration with Securitize and Global Dollar (USDG): ACRED. ACRED, or the Apollo Diversified Credit Securitize Funds, bridges regulated RWA collateral with permissionless stablecoin liquidity on Loopscale. This is a major step toward Loopscale's vision of becoming the foundational credit layer for both crypto-native and real-world, institutional assets on Solana. ### OnRe Finance’s ONyc Our integration with [OnRe Finance](https://onre.finance/) continued through Q4. The ONyc USDC Vault on Loopscale has become one of our highest-yielding Vaults, lending USDC to ONyc collateral and consistently delivering 10%+ APY, including rewards and points incentives. Meanwhile, ONyc loopers are leveraging ONyc’s yields from real-world reinsurance, with the ONyc / USDC Loop sitting at \$15.8M in deposits and earning an average APY of 27.3%. Loopscale's modular architecture enables partners to create targeted incentive programs that drive real capital efficiency. Incentives go to where they matter, while new asset primitives gain access to credit markets. ### FLP.r and rStocks We shipped support for [Remora's rStocks](https://remoramarkets.xyz/) through [Flash Trade](https://www.flash.trade/)’s FLP.r: Users can now: * Leverage the FLP.r pool through Loopscale's FLP.r / USDC Loop * Lend USDC to FLP.r via Loopscale's USDC Public Vault * Earn \$20,000+ in \STEP rewards. Loopscale is positioned to be the first credit market for every new tokenized asset onchain. ### Etherfuse TESOURO and CETES Loopscale became the home for Brazilian treasury bond tokens via our integration with [Etherfuse](https://www.etherfuse.com/). The TESOURO stablebond offers \~13% yield on its own via tokenized Brazilian government bonds, but when looped on Loopscale, users can achieve up to 37.5% APY. We also added support for CETES, Etherfuse's Mexican treasury-backed token, further expanding Loopscale's RWA support. ### Alphaledger Integration Building on our commitment to real-world assets, we announced our integration with [Alphaledger](https://www.alphaledger.com/), the Solana-native securities tokenization platform. As Alphaledger continues to bring regulated financial products onchain, Loopscale serves as the credit layer that unlocks liquidity and leverage for these assets. Plume Partnership We announced a partnership with [Plume](https://plume.org/), the RWA-native chain. This collaboration expands Loopscale's reach into cross-ecosystem RWA markets. Breakpoint 2025 Our team participated in Solana Breakpoint 2025 in Abu Dhabi, where Loopscale was featured in discussions around the future of RWA lending and credit markets on Solana. We can’t wait for what Breakpoint 2026 will bring. ### DeFi Development Corp Partnership [DeFi Development Corp](https://defidevcorp.com/) (DFDV), the first public company with a treasury strategy built around Solana, signed a Letter of Intent with Loopscale. Under the agreement, DeFi Development Corp intends to deploy a portion of its SOL and stablecoin reserves into Loopscale vaults to generate yield. We’re now seeing how public companies can engage with DeFi lending infrastructure in a compliant, yield-generating capacity. ### Blockworks Research The [Blockworks Research](https://www.blockworksresearch.com/) team published a report highlighting Loopscale's role as a foundational credit layer for next-generation Solana assets. Carlos Campo's analysis explores how Loopscale's orderbook-based model enables capital efficiency that pool-based protocols cannot match. ### dFlow and Titan Integration Loopscale continues to integrate with the best execution infrastructure on Solana. Our new integrations with DEX aggregators [dFlow](https://x.com/Loopscale/status/1991880948561170492) and [Titan](https://x.com/Loopscale/status/1991522727585542355) ensure that Loop openings and closings execute with the least possible execution impact, even for larger positions. ## New Loops and Collateral Types Q4 saw significant expansion in supported collateral and Loop products: ### Bulk: bulkSOL and PT-bulkSOL Loopscale now supports bulkSOL and PT-bulkSOL from [Bulk Trade](https://www.bulk.trade/), enabling leveraged strategies on this LST that precedes the launch of Bulk’s powerful onchain perpetual futures markets. ### Raydium LP Collateral [Raydium CLMM LP tokens can now be used as collateral on Loopscale](https://x.com/Loopscale/status/1986833634297586128), further expanding our support for concentrated liquidity positions. ### Exponent LP Collateral [We shipped support for Exponent Finance LP positions as collateral](https://x.com/Loopscale/status/1989351106577887528), enabling users to unlock liquidity from their yield-trading positions. ### Hylo Integration We built out further [Hylo](https://hylo.so/) integrations, adding Loops for Hylo’s sHYUSD, and xSOL. With \$10M+ in deposits, sHYUSD Loops are among the most popular looped assets on Loopscale, earning up to 35% for Hylo users coming to Loopscale. We also shipped RateX and Exponent Finance PT Loops for Hylo assets, letting users lever up on fixed yields. ### Zenrock We added support for [Zenrock](https://zenrocklabs.io/) assets. BTC and Zcash, now on Solana, made possible by Zenrock’s architecture. ### Oro The [Oro](https://oro.finance) integration brings additional real-world collateral — in this case, tokenized gold — to Loopscale's growing roster of supported assets. Depositors to USDC Public, the vault that lends to Oro’s \$GOLD, earn GOLD rewards. Looking Ahead to 2025 Q4 was our most ambitious quarter yet, but we're just getting started. Here's what's on the horizon for 2026: * Continue expanding RWA support: More tokenized treasuries, stocks, and institutional credit products * New integrations for ecosystem products as they launch on Solana across various new perpetual futures venues, DeFi primitives, prediction markets, and more. * More security: Additional audits, both feature-specific and protocol-wide, are currently in the works for Loopscale. Thank you to our community, partners, and users for an incredible quarter. The foundation we've built in 2025 sets the stage for Loopscale to become the definitive credit layer for onchain capital markets. Let's keep building. # From Order Books to Yield Loops: How Loopscale Powers DeFi Structured Products Source: https://blog.loopscale.com/posts/structuredproducts DeFi has dismissed order books as complex and resource-intensive. But [order books provide a more powerful lending experience](https://blog.loopscale.com/posts/modularlending) than many existing primitives in DeFi today. They simplify user experience by providing clear functionality without the need for complex pool mechanisms. Looking ahead: order books enable better sophisticated onchain structured products. In finance, structured products are pre-packaged strategies. Loopscale's first structured product is the Yield Loop: one-click leverage for yield-bearing tokens. Yield bearing tokens, like staked Solana and Jupiter's JLP, generate yield from onchain economic activity. Loopscale's Yield Loops give users the capability to lever these tokens, amplifying returns. ## Yield Loops: Structured leverage In a Yield Loop, a token is used as collateral to borrow more of the same token. This creates a loop where both the initial deposit and borrowed tokens earn yield, multiplying returns. Loopscale automates this multi-step process and simplifies it into one action for the user. Here’s what happens behind the scenes, using @JupiterExchange's Solana liquid staking token (JupSOL) as an example. To lever up JupSOL via the JupSOL-SOL Yield Loop, Loopscale performs the following: 1. Loopscale borrows SOL with no collateral via a flash loan 2. SOL is swapped for more JupSOL 3. JupSOL is deposited as collateral in Loopscale 4. SOL is borrowed against the JupSOL collateral 5. Borrowed SOL repays the initial flash loan Loopscale executes these steps atomically. This means that all the above actions occur within a single transaction and revert if any step fails. The end result: a levered JupSOL position earning more yield as long as borrow rates are lower than the base JupSOL yield. **All accomplished with a single user action**. This is the power of orderbooks with the simplicity of modern DeFi UX. ## Order books -> structured products This strategy has always been possible with traditional pool-based lending protocols—but Loopscale's order book model enables efficiency that pool-based incumbent strategies can't match. Yield Loops use Loopscale’s fixed-rate loans. This protects users from rate spikes that could turn profitable positions negative when a Yield Loop’s borrow rate exceeds the yield from the yield-bearing token. Loopscale defaults to 1-day fixed terms with automatic refinancing for short-term protection, plus weekly and monthly options for users wanting longer certainty. Furthermore: rates are better because lenders set rates based on specific collateral rather than a pool of different assets (as seen with the pool model). This means better rates when borrowing off USDC compared to borrowing off a pool containing other assets, some more volatile than others. Isolated positions prevent contagion across markets during volatility. And Yield Loops are (technically) possible for any market, as long as there are willing counterparties. This same architecture supports more sophisticated structures like tranches, structured credit, and RWAs—all from the same primitives. ## Building beyond pools Loopscale enables onchain structured products that will operate beyond the constraints of traditional pool-based lending. Modularity is the foundation of true composability. When lending becomes a simple agreement between parties rather than an interface with an algorithmic pool, it becomes the groundwork for structured products like Yield Loops. Yield Loops have facilitated over \$480M in volume during closed beta as of time of writing. The combination of fixed rates and atomic execution has made these strategies viable for both retail and institutional participants seeking leveraged exposure to yield-generating tokens. The future of DeFi requires infrastructure that can scale to support any asset—each with different risk profiles and market dynamics. Through order books, Loopscale delivers both the simplicity users expect and the sophistication that modern financial markets need.