# Loopscale Restores Priority Lending, Contains Two Attack Paths

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/51161
Published: 2026-11-07T23:02:21.000Z
Updated: 2026-11-07T23:02:21.000Z
Section: Technology

> Borrowers can add collateral to all loans, but USDC Genesis Vault-funded loans cannot be repaid. Vault withdrawals and some collateral withdrawals remain restricted.

Loopscale has restored priority lending on its Solana (SOL) protocol and says it contained two attack paths involving its SOL Genesis Vault and USD Coin (USDC) Genesis Vault.

Borrowers can add collateral to all loans, while repayment remains unavailable for loans funded by the USDC Genesis Vault. Borrowers who repay in full can withdraw collateral, but withdrawals tied to those USDC-funded loans remain disabled. Vault withdrawals and other protocol features are still restricted.

One attack path targeted the SOL Genesis Vault. Misconfigured asset-pricing parameters caused collateral to be valued as a different asset, enabling about $412,000 in undercollateralized loans.

A second path used bundled atomic transactions to sell very high-interest loans into the USDC Genesis Vault, raising its net asset value before a disproportionate redemption attempt of about $521,000. Loopscale said the system blocked the transaction within 30 seconds of its creation.

The update follows the protocol’s earlier [suspension of lending](<https://www.tokenpost.com/news/technology/50188>).



## Links in this article

- [suspension of lending](https://www.tokenpost.com/news/technology/50188)
