Is Loopscale Safe?

|Lending
C

Risk Grade: C (48/100)

Loopscale is rated as elevated risk — multiple novel mechanisms and notable interaction risks.

High risk — confirmed exploit and exotic collateral pricing create ongoing oracle manipulation vulnerability

A Solana lending protocol that matches lenders and borrowers through an order book and accepts exotic collateral types like Pendle yield tokens. It holds $91M in deposits. Its C- grade reflects a confirmed $5.8M exploit in April 2025 where attackers manipulated the price of exotic collateral to steal funds, plus thin documentation. The exploit funds were fully recovered, which moderates the track record penalty.

TVL

$82M

Mechanisms

3

Interactions

2

Value Grade

D-

Key Risks for Loopscale Users

1.

Already hacked for $5.8M through a price manipulation attack on exotic collateral. The same type of attack could happen again with different collateral types.

2.

Lending against unusual tokens like Pendle yield tokens requires custom price feeds. These feeds have fewer checks and balances than standard assets.

3.

If the protocol suffers a second exploit, its reputation may not survive. A second breach would likely cause a permanent loss of user trust and deposits.

Top Risk Factors

  • Confirmed $5.8M oracle exploit via RateX PT pricing
  • Exotic collateral pricing introduces oracle surface area

Risk Score Breakdown

Loopscale's highest risk area is Oracle Surface (10/10). Here's how each dimension contributes to the overall 48/100 score:

Mechanism Novelty2/15
Interaction Severity8/20
Oracle Surface10/10
Documentation Gaps7/10
Track Record10/15
Scale Exposure3/10
Regulatory Risk5/10
Vitality Risk3/10

Read the Full Loopscale Risk Report

This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.