Devin BlackDevin Black
June 30, 2025
Loopscale is closing out Q2 2025 with substantial progress since going live in April. 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 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.

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Expanded supported assets for Loops and collateral

Loopscale supports the most assets of any lending protocol on Solana. 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 and RateX, 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.
  • Yield-bearing tokens: Loopscale is purpose-built for yield-bearing tokens, like Fragmetric’s fragSOL and fragBTC, Maple Finance’s syrupUSDC, and Yala’s 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.
  • Tokenized Stocks: Our rapid support for 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.

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The best place to park your SOL

Throughout Q2 and continuing today, the SOL GENESIS Vault 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.

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New features and UX improvements

In Q2, we shipped many UX improvements based on community feedback:
  • A better Loops page 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 and Portfolio pages.
  • Alongside our public launch, we unveiled a refreshed brand identity. Shout out to @saniaio and @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.

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A continued dedication to security

Our protocol suffered a security incident on April 26th. 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.

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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. 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. 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!