Loopscale

Loopscale @Loopscale · 2d

Update: Priority loan functionality has now been restored across the platform.
• Collateral-top ups are available for all loans
• Repayments are available for all loans except those funded by the USDC Genesis Vault
• Borrowers who fully repay loans can withdraw their collateral. Collateral withdrawals remain temporarily disabled for loans funded by the USDC Genesis Vault.

Vault withdrawals and all other protocol functionality remain restricted out of an abundance of caution. Our team and partners are working to ensure a safe restoration of full functionality as quickly as possible.

We have identified and contained the two paths used during this incident. Both paths involved sophisticated, multi-step transactions targeting publicly inspectable program logic and private transaction-building APIs. The attacker first targeted the SOL Genesis Vault using a misconfigured combination of asset-pricing parameters that caused deposited collateral to be valued as a different asset, enabling an undercollateralized loan of approximately $412K. They later used an atomic transaction bundle to sell a loan carrying an extreme interest rate into the USDC Genesis Vault, inflating its NAV and enabling a disproportionate redemption of approximately $521K which our systems halted within 30 seconds of transaction generation. No user deposits will incur a loss.

We will share further updates from this account as our investigation progresses and additional functionality is safely restored.

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Loopscale @Loopscale · 3d

Over the past week, Loopscale has been targeted in a sustained campaign by a sophisticated actor, with the protocol APIs receiving more than 30,000 malicious requests per day. All deposited user funds are secured.

Earlier, our security systems detected a significant escalation in the campaign, and we promptly acted to pause protocol activity to mitigate impact. The attack attempts targeted the SOL and USDC Genesis Vaults. Affected vaults have been made whole and no user deposits have incurred a loss.

The protocol will not resume normal operations until we have established the complete scope of the campaign and implemented further security hardening. We  will be re-enabling the protocol interface shortly and are working to resume repayment functionality as soon as possible to mitigate unforeseen liquidations.

The following addresses have been identified in connection with this activity:
247Lk5YNH9URfBBvxVUtDruz8GvGX8gKGuYHVCZThpiR
AzPh2dUV3duK9n8PWV6CxKMwWr9Rk7fxPNBZuv1CiwMr
0xb8959Aca4e4C796A3BaDA66833eAe60b1BC0bfb2
0xB7Ec7eF24FD73f3000C651CA9D0Fa45b61DcF854

We are actively engaged with federal law enforcement and security professionals. Protecting user funds remains our highest priority, and we will continue to share relevant information and material updates as they become available.

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0xResearch Verified account @0xResearch · Oct 28

NEW POD

We cover:
▫️ Why a DEX and lender merged
▫️ ONYC vs ACred: liquidity caps credit
▫️ Neo-clouds borrowing at 14–20% onchain
▫️ xORCA fees cut 40%→10%
▫️ Prop AMMs hit ~36% of Solana DEX

@Luketruitt @marcarjoon @0xcarlosg

Timestamps:
00:00 Luke Truitt, CEO of Formation
02:28 Why a DEX and a Lender Merged
05:30 ONYC vs ACred: Liquidity Caps Credit
10:55 Neo-Clouds Borrowing at 14–20% Onchain
13:57 DAS London
14:35 Neo-Clouds Borrowing at 14–20% Onchain (cont.)
17:47 Clarity Act and Regulated US Markets
21:17 Token Holders in Crypto M&A
28:24 DAS London
29:02 Token Holders in Crypto M&A (cont.)
34:28 Monetizing Credit Through Trading
38:03 xORCA Fees Cut 40%→10%
44:54 Competing for New Lending Markets
48:59 Are DeFi Yields Mispriced?
51:50 Prop AMMs Hit ~36% of Solana DEX
56:21 Formation's Next 12 Months

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