And We're Back.
Following a comprehensive external audit of the Loopscale program library, all protocol functionality, including deposits, Loops, and borrows, has been restored. Alongside this update, we’re introducing new markets, UI improvements, and security upgrades.
How we’re coming back stronger
After the incident on April 26, we paused all protocol functionality as a precautionary measure. Since then, we’ve recovered all affected funds, reopened withdrawals, and taken key steps to strengthen protocol security. We’ve also identified the actor responsible for the incident and have shared relevant information with ecosystem teams to help prevent similar incidents.
We partnered with Sec3 for a full protocol audit and now a secondary post-review of all Loopscale programs. All findings have been addressed and the final audit report will be published shortly.
Today marks an important checkpoint. With a strengthened foundation, we can now refocus on shipping great products.
Key Security Improvements
Our response to the April 26 incident shaped a security-first framework that will guide every future Loopscale release.
1. Bug Bounty Program: We’ve launched a bug bounty program to engage the security community in further protecting the protocol with a focus on preventing loss of funds and unauthorized access. Details are available here.
2. Comprehensive External Review: No program-level features will be shipped without a third-party audit.
3. Improved Operational Security and Monitoring: All market, Vault, and oracle parameter changes now require multisig approval. We've formalized weekly reviews of failed transactions, backend logs, and RPC anomalies, supplementing our existing round-the-clock monitoring systems.
4. Protocol-Level Safeguards: We are working on implementing new risk controls to provide an additional layer of protection against security incidents:
- Borrow, supply, and withdrawal caps
- Collateral exposure limits
- Manual and delayed approval mechanisms for large loans
- FIFO withdrawal queues for stressed market conditions
Additionally, a temporary backend co-signature requirement validates all instruction calls, preventing unverified cross-program invocations like the one used in the April exploit. This measure remains in place until we conclude an additional series of audits. Importantly, users still retain full control of their assets. Loopscale can never initiate transactions — only validate them.
You can read more about our ongoing commitment to security in the PT Collateral Pricing Incident Post-Mortem.
What we’ve been shipping
Over the past few weeks, we’ve also had the opportunity to address top user requests and add new markets. Alongside security improvements, we’ve rolled out new Vaults, Loops, and supported collateral assets, with more integrations on the way as the Solana DeFi ecosystem continues to grow.
New Markets
Vaults:
- zBTC
- JUP
- JTO
- EURC
- USDS
Loops:
- wfragSOL / SOL
- PT USD* / USDG - perena-usd*-19Sep25-usdg (Exponent)
- PT USD* / USDC - perena-usd*-19Sep25-usdc (Exponent)
Collateral assets:
- wfragBTC
- wfragJTO
- zBTC
- PYUSD-USDC Stabble
- USDS-USDT-USDC Stabble
- PYUSD-USDT-USDC Stabble
- PT-USD*-19sep25
Improved Loop PnL Display
Loops have been one of our fastest-growing products. With that growth came valuable user feedback. We’ve redesigned the Loop PnL display to clarify common questions and provide users with a comprehensive view of their positions. Users can find this new display by More -> View Loan on their Loop position.
What's Next
With Loopscale fully operational, we’re turning our focus to product improvements and long-term protocol goals. Here’s what’s coming next:
Third-Party Vault Curators. We're onboarding external Curators to launch specialized Vaults with diverse risk profiles and onchain performance tracking.
More Assets and Loops. We’re actively expanding support for new collateral tokens, PT primitives, and Loops to broaden market access and utility.
Partner Rewards and Points: Development is underway to integrate external rewards and points programs natively in Loopscale.
The security incident was a test of our protocol and a test of our team. We’re confident that we are emerging stronger than with battle-tested infrastructure, expanded partnerships, and a renewed focus on our mission to build the next generation of credit markets on efficient, open networks.
Loopscale is back. Let's keep moving forward.