.
AltHunter Updates |
No Result
View All Result
  • Home
  • Hot News
  • Latest News
  • All About News
  • Bitcoin
  • Telegram
  • X
No Result
View All Result
AltHunter Updates |
No Result
View All Result
Home All About News

Loopscale loses $5.8M in oracle attack

AltHunter by AltHunter
April 28, 2025
in All About News, Latest News
0
Loopscale loses $5.8M in oracle attack
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related articles

The state of Injective: Where onchain money goes further

The state of Injective: Where onchain money goes further

July 1, 2025
Dollar Index (DXY) Suffers Worst Crash Since 1991; Bitcoin’s (BTC) ‘Stochastic’ Points to Renewed Drop Below $100K

Dollar Index (DXY) Suffers Worst Crash Since 1991; Bitcoin’s (BTC) ‘Stochastic’ Points to Renewed Drop Below $100K

July 1, 2025

This is a segment from the Lightspeed newsletter. To read full editions, subscribe.


Loopscale Labs had one tough weekend.

Bad actors on Saturday exploited Loopscale’s pricing functions to make loan collateral seem worth more than it really was, resulting in the theft of approximately $5.7 million in USDC and 1,200 SOL (or around 12% of the platform’s total assets.)

It’s obviously not ideal to suffer an exploit just two weeks after launching, but this isn’t your typical “DeFi protocol caught with its pants down” moment. On the contrary, many DeFi folks have rallied behind Loopscale’s response to the exploit, applauding the team’s speed, professionalism and commitment to user recovery. 

Loopscale USDC and SOL vault depositors do face losses, though early signs seem to point to a partial or even full recovery. 

For those unfamiliar, Loopscale’s story ‘til now unfolds thusly. 

Loopscale is a decentralized finance (DeFi) project that automates recursive leverage to make yield farming more efficient. Loopscale’s bread and butter is “looping” — repeatedly borrowing and redepositing assets to amp up yield and capital efficiency. They weren’t the first team to try to morph this premise into a mainstream financial primitive, but they have quickly become one of the most compelling. Honestly, it’s pretty neat work.

While the looping process has historically been dangerous, Loopscale’s system offered automation, liquidation protection features, and a user experience that abstracted away many of those perceived risks. Loopscale’s vaults, known for their attractive yields and tokenized market integrations, became a favorite among farmers looking for structured, lower-friction leverage. 

Founded by a small but technically-strong team — including Mary Gooneratne and a handful of early RateX contributors — Loopscale built a reputation as one of the more serious players among Solana’s DeFi cohort.

At the core of Loopscale’s recent growth was its adoption of RateX’s Principal Token (PT) markets. Simply put, Principal Tokens are created by splitting a yield-bearing asset into two components — principal and yield — allowing users to trade, hedge, or lock in fixed returns more flexibly. In Loopscale’s case, PT tokens were used as collateral in the vaults on the assumption that their pricing would remain tightly aligned to predictable discounting curves.

But then, on April 26, that predictable curve broke.

According to Loopscale, a person with malicious intent manipulated how its vault system priced the RateX PT tokens, making the tokens seem worth more than they were. As a result, the attacker was able to take out a series of loans that were not fully backed by collateral, managing to withdraw $5.7 million USDC and 1,200 SOL from Loopscale’s vaults.

The vulnerability was not in RateX itself, as Loopscale has emphasized. The issue was in how Loopscale’s contracts priced the RateX tokens.

RateX founder Sean Hu explained, “Based on our investigation, the Loopscale incident has been confirmed as an oracle attack. The attacker manipulated the oracle price of collateral on Loopscale to borrow 5.8 million dollars, draining funds from the lending pool. RateX’s protocol itself has no security issues, and no RateX users suffered losses in this incident.”

RateX also confirmed it is assisting Loopscale in tracking the hacker and recovering funds.

As soon as Loopscale detected the exploit, it halted all market functions to prevent further damage — disabling new loops, deposits and withdrawals across the platform while working to triage the situation.

In the immediate aftermath, Loopscale’s handling of the crisis drew frank praise. The team issued a clear initial disclosure, re-enabled critical functions like loan repayments and loop closing by the following day (big for protecting borrowers from unforeseen liquidations), and began coordinating with law enforcement and security professionals.

Then, on April 28, Loopscale announced it had successfully established contact with the attacker. The exploiter had responded to an onchain message proposing a white hat resolution, agreeing (tentatively) to return a portion of the stolen funds in exchange for a bounty.

While Loopscale initially offered a 10% reward, the exploiter countered with a 20% ask, citing frozen assets on crosschain bridges and offering to immediately return part of the stolen funds to prove good faith.

At the time of publication, negotiations remain ongoing. However, the initial signals are positive. A partial return appears to have already occurred, and Loopscale is preparing a detailed post-mortem and structured plan for resuming vault withdrawals. The team has also promised users a clear roadmap for what recovery will look like.


Get the news in your inbox. Explore Blockworks newsletters:

Tags: 5.8MAttackLoopscalelosesoracle
ShareTweet

Related Posts

The state of Injective: Where onchain money goes further

The state of Injective: Where onchain money goes further

by AltHunter
July 1, 2025
0

Injective took a significant step forward at the Injective Summit, where it announced three game-changing developments: iBuild, a no-code platform...

Dollar Index (DXY) Suffers Worst Crash Since 1991; Bitcoin’s (BTC) ‘Stochastic’ Points to Renewed Drop Below $100K

Dollar Index (DXY) Suffers Worst Crash Since 1991; Bitcoin’s (BTC) ‘Stochastic’ Points to Renewed Drop Below $100K

by AltHunter
July 1, 2025
0

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.The dollar index (DXY), which tracks...

Is Robert Kiyosaki a Sucker for Buying More Bitcoin?

Is Robert Kiyosaki a Sucker for Buying More Bitcoin?

by AltHunter
July 1, 2025
0

The author of Rich Dad Poor Dad became a Bitcoin bull several years ago and has since been highly vocal...

Smarter Web Buys $24.7M in BTC, Lifts Holdings to 773 BTC

Smarter Web Buys $24.7M in BTC, Lifts Holdings to 773 BTC

by AltHunter
July 1, 2025
0

United Kingdom-based web design and marketing firm The Smarter Web Company has expanded its Bitcoin treasury, purchasing an additional 230.05...

Crypto Stocks To Watch Today

Crypto Stocks To Watch Today

by AltHunter
July 1, 2025
0

US stocks climbed to fresh record highs on Monday, propelled by signs of progress in global trade talks and easing...

Load More
  • Trending
  • Comments
  • Latest
The investor’s guide to the DESK perps trading airdrop

The investor’s guide to the DESK perps trading airdrop

March 25, 2025
Drink-to-earn? A new sparkling water comes with an NFT and points

Drink-to-earn? A new sparkling water comes with an NFT and points

May 8, 2025
Execs expect patient SEC after SOL futures launch, more altcoin filings

Execs expect patient SEC after SOL futures launch, more altcoin filings

March 26, 2025
Mysten Labs’ Walrus could reshape decentralized gaming and apps

Mysten Labs’ Walrus could reshape decentralized gaming and apps

March 26, 2025
XRP, DOGE Rise, Ether Burn Falls to Record Low as Traders Eye This Week’s U.S. Data

XRP, DOGE Rise, Ether Burn Falls to Record Low as Traders Eye This Week’s U.S. Data

0
Trump Family-Linked World Liberty Snaps Up 3.54M MNT Tokens After Mantle’s Hard Fork

Trump Family-Linked World Liberty Snaps Up 3.54M MNT Tokens After Mantle’s Hard Fork

0
Philippines’ Largest Digital Wallet GCash Adds USDC Support

Philippines’ Largest Digital Wallet GCash Adds USDC Support

0
XRP Could Hit $10 by 2030 as Ripple Wraps Up SEC Case: Analyst

XRP Could Hit $10 by 2030 as Ripple Wraps Up SEC Case: Analyst

0
The state of Injective: Where onchain money goes further

The state of Injective: Where onchain money goes further

July 1, 2025
Dollar Index (DXY) Suffers Worst Crash Since 1991; Bitcoin’s (BTC) ‘Stochastic’ Points to Renewed Drop Below $100K

Dollar Index (DXY) Suffers Worst Crash Since 1991; Bitcoin’s (BTC) ‘Stochastic’ Points to Renewed Drop Below $100K

July 1, 2025
Is Robert Kiyosaki a Sucker for Buying More Bitcoin?

Is Robert Kiyosaki a Sucker for Buying More Bitcoin?

July 1, 2025
Smarter Web Buys $24.7M in BTC, Lifts Holdings to 773 BTC

Smarter Web Buys $24.7M in BTC, Lifts Holdings to 773 BTC

July 1, 2025

About Us

Welcome to AltHunter Updates, your premier source for the latest cryptocurrency news, market trends, and expert insights. We are dedicated to providing up-to-date, accurate, and in-depth analysis of the fast-evolving world of digital assets.

Categories

  • All About News
  • Bitcoin
  • Hot News
  • Latest News

Recent News

  • The state of Injective: Where onchain money goes further
  • Dollar Index (DXY) Suffers Worst Crash Since 1991; Bitcoin’s (BTC) ‘Stochastic’ Points to Renewed Drop Below $100K
  • Is Robert Kiyosaki a Sucker for Buying More Bitcoin?

Copyright © 2025 AltHunter Updates.

  • Home
  • Hot News
  • Latest News
  • All About News
  • Bitcoin
  • Telegram
  • X

Copyright © 2025 AltHunter Updates.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok