TREE NEWS update: Solana lending protocol Loopscale has partly restored loan functions but repayments and collateral withdrawals remain disabled for USDC Genesis-funded loans, the protocol said. It detailed two attack paths behind the disruption. Vault withdrawals also stay frozen.
Loopscale Restores Some Loan Functions, Keeps Vault Withdrawals Frozen
Partial restoration is a reminder that incident recovery in DeFi is rarely a single switch: the protocol is reopening the functions it can safely operate while leaving the paths tied to the exploited USDC Genesis loans and vault withdrawals shut. The distinction matters most for users whose funds sit on the still-frozen side, since restored borrowing capacity does little for those unable to exit. The open question is whether Loopscale's account of the two attack paths translates into a credible path to unfreezing repayments and collateral, and how long that gap persists.
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