Most Solana lending runs on shared pools with floating rates. Loopscale takes a different approach: it matches lenders and borrowers on an order book at fixed rates for fixed terms. That design affects everything about using it, from how your loan can be liquidated to how its points program scores you. Loopscale has no token, and its docs say so plainly, which makes it a magnet for fake airdrop pages. This guide explains how the protocol works, how Loopscale Points and partner points are earned, what happened in the April 2025 exploit, and how to protect yourself while you use it.
What Loopscale is
The Loopscale documentation describes a modular lending protocol on Solana built around a Credit Order Book. Lenders post limit orders defining the principal asset, accepted collateral, rate and duration. Borrowers fill the best available offer. When a match happens, the lender’s capital goes to the borrower, the collateral is escrowed, and a repayment ledger tracks interest and health. Because lenders are matched directly, the lend rate equals the borrow rate, with no pool spread.
In the app this complexity is mostly hidden behind four products:
- Loopscale Vaults. Single-asset lending vaults run by curators, who choose eligible collateral, rates, loan-to-value limits and a liquidity buffer for withdrawals.
- Advanced Lending. Your own lending strategy with custom terms, plus an “Optimized Yield” option that parks idle funds in external venues such as marginfi.
- Borrow. Fixed-rate, fixed-term loans against a very wide range of collateral, including SPL and Token-2022 assets, liquid staking tokens, PT tokens, and Orca or Raydium concentrated-liquidity positions.
- Loops. One-click leveraged positions on yield-bearing assets such as JupSOL/SOL or PT loops, financed with fixed-rate debt so rate swings do not erode the carry.
A newer Earn Vaults product, first powered by Exponent, lets a manager combine lending, looping and fixed-yield positions into one vault with a share token priced at NAV.
Official links: loopscale.com, the app at app.loopscale.com, the docs above and the X account @Loopscale.
How Loopscale Points work
The Points page lists four ways to earn:
- Lending through Vaults or Advanced Lending.
- Borrowing against supported collateral.
- Creating and managing Loops.
- Referrals: you earn 5% of the non-referral points earned by users who sign up with your link, with no cap on how many people you refer.
A few details make the program specific to Loopscale’s design. Lenders earn points on deposited capital even before it is matched to a borrower, but matched capital earns more, because the program rewards real market depth. Positions with bonus multipliers are marked with yellow or blue stars next to the APY, and hovering over a star shows the detail. Estimated points per position appear under the amount fields on the Lend, Borrow and Loop pages.
Points earned before April 4, 2025 count as Beta Points and are tracked separately from standard points, to recognize early testers before public launch.
Partner points
Many Loops and vaults also earn points from integrated protocols. These are shown with the partner’s logo, and the partner tracks and distributes them, not Loopscale. The docs list Solayer (sSOL/SOL loops), Adrastea (lrtsSOL/SOL), Meteora (MLP/USDC), Solana App Hub (hubSOL/SOL), Fragmetric (fragSOL and fragBTC vaults and loops), Flash Trade (FLP loops), RateX (PT loops) and marginfi (idle funds in Optimized Yield).
Current status at the time of writing
Loopscale’s FAQ states: “No token or airdrop has been announced.” It adds that anyone offering one is not affiliated with the team. Points are a record of participation, with no published conversion. The protocol itself is active. DefiLlama shows TVL climbing from under $50 million in mid-2025 to about $100 million by October 2026. Development has continued, with a run of audits by Adevar Labs between July 2025 and May 2026 covering asset integrations, Token-2022 transfer hooks, tokenized vault LPs and the BEAM oracle adapter.
The April 2025 exploit and what changed
On April 26, 2025, shortly after public launch, an attacker drained roughly $5.8 million from Loopscale’s USDC and SOL Genesis vaults. According to Rekt News’s write-up, the attacker manipulated pricing for RateX PT-based collateral to take out undercollateralized loans. After negotiations, the attacker returned all of the funds in stages under a whitehat bounty arrangement. The docs’ audit list shows further reviews after the incident, including a sec3 audit of Loopscale V1 in May 2025. A bug bounty pays up to $250,000 for critical program vulnerabilities.
The lesson for users is that exotic collateral is where Loopscale’s flexibility and its risk meet. The protocol can price almost anything, so oracle quality matters a great deal.
How to participate and track your activity
- Start at app.loopscale.com and connect your Solana wallet. Bookmark it rather than searching for it.
- Lenders: read the vault’s curation before depositing. Check accepted collateral, LTVs, liquidation thresholds, maximum loan size and the liquidity buffer. If the buffer is low, you may have to pay a small fee for an instant withdrawal or join a queue.
- Borrowers: pick duration carefully. Rates are fixed for the term. Turn on auto-refinance or plan to roll the loan before it expires, because a loan that cannot be refinanced after its grace period is liquidated.
- Loopers: start with low leverage. Choose market-neutral loops (LST/SOL, stablecoin) over directional ones unless you will actively manage the position, and remember that PT loops can be rolled to the next maturity.
- Track points on the Points page and partner points on each partner’s own dashboard. Keep a record of when you opened and closed positions, since multipliers change.
- Monitor loan health on the Portfolio page. Health runs from 100% (safe) to 0% (liquidatable), and Loopscale counts interest for the full loan term in your debt value.
Risks specific to Loopscale
- Time-based liquidation. Unlike pool lenders, Loopscale loans have maturities. A failed refinance, whether from thin order books, chain congestion or a technical failure, can lead to liquidation after the grace period even when prices have not moved.
- Refinance at a worse rate. The matching engine looks for the cheapest available order, but that may cost much more than your original rate.
- Exotic collateral. LP positions, PT tokens and Token-2022 assets bring oracle, liquidity and issuer risk. The 2025 exploit came through exactly this route.
- Partial liquidations and fees. Loopscale first sells only enough collateral to restore the maximum LTV. The liquidation fee equals how far the loan was above the liquidation LTV when it was liquidated.
- Curator risk. Vault yields and safety depend on the curator’s choices of collateral and terms.
- Withdrawal timing. Vault deposits are lent out. If the buffer is used up, exits can be delayed or cost a fee.
How to spot fake Loopscale claim pages
- There is no LOOP token. The FAQ says no token or airdrop has been announced. Any “Loopscale airdrop”, “claim LOOP” or points-conversion page is fake by definition.
- Official domains are loopscale.com, app.loopscale.com and docs.loopscale.com. Be wary of shortened or look-alike links, and always confirm you end up on loopscale.com.
- Partner-points scams. Because Loopscale positions earn points from partners such as Solayer, Fragmetric and RateX, scammers may pose as those partners. Partner claims happen on each partner’s own official site.
- Fake vault “migrations”. A message saying you must move funds to a “new Loopscale vault” after an incident should be checked against @Loopscale and the docs’ Addresses page.
- Transaction previews. On Solana, a drainer can move many tokens in one transaction. A legitimate rewards claim from a vault only harvests reward tokens to your wallet.
FAQ
Does Loopscale have a token?
No. The official FAQ states that no token or airdrop has been announced.
Do idle vault deposits earn points?
Yes, but matched (actively lent) capital earns more. Idle funds routed through Optimized Yield can also earn marginfi points.
What are Beta Points?
Points earned before April 4, 2025. They are shown separately from standard points to recognize early testers.
Can my loan be liquidated if prices don’t move?
Yes. If a fixed-term loan reaches maturity and cannot be refinanced after the grace period, it can be liquidated.
Verdict
Loopscale brings fixed-rate, order-book credit to Solana and accepts collateral that pool-based lenders will not touch. Its points program rewards real liquidity and leans heavily on partner points. Those are reasons to use it on its merits, not to farm a token that has not been announced. Understand maturity and refinance risk, be careful with exotic collateral, and treat anything promising a Loopscale airdrop as a scam until @Loopscale says otherwise.
This article is not financial advice. Leveraged and fixed-term lending positions carry real risk, so review the official docs before committing funds.
