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.

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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.

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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.

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…In with the new

Today, Loopscale introduces a new modular lending infrastructure 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 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.

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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.

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The next generation of onchain credit

Loopscale’s architecture creates the foundation for the next frontier of onchain financial products, 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 to be the first to read product updates and future announcements. Visit our Discord to join our community, get support, and provide feedback.

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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.