Loopscale has restored its priority lending feature, allowing borrowers to reclaim their collateral once they repay their loans in full. But withdrawals of collateral tied to the USDC Genesis Vault are still disabled, and vault withdrawals haven't reopened either.

There were two attack paths. First, a misconfiguration in asset pricing parameters caused $SOL Genesis Vault collateral to be mispriced as another asset, allowing the attacker to obtain an undercollateralized loan worth about $412,000. Then, using a combination of atomic transactions, the attacker sold a high-interest loan to the USDC Genesis Vault, artificially inflated its NAV, and siphoned off about $521,000 in redemption funds. The attack was stopped within 30 seconds.

The team says users' deposits are safe. The key thing to watch is when withdrawals from the USDC Genesis Vault reopen—that's when we can say it's truly recovered.

#DeFi #Stablecoin