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Loopscale Says User Funds Remain Safe After Limited Exposure to Drift Incident

According to Loopscale, most products were unaffected, while about $170,000 in the SOL Genesis vault has limited indirect exposure through MarginFi after protocol functions were paused.

SOL

Summary

Loopscale said most of its products were not directly affected by the Drift incident and that user funds remain safe. The platform disclosed that about $170,000 in the SOL Genesis vault is allocated to MarginFi, with a small portion facing indirect exposure. Following MarginFi’s pause of protocol functions, Loopscale temporarily closed deposits and withdrawals for several vaults as a precaution.

Terms & Concepts
  • Vault: A crypto investment pool or strategy product that holds user assets and deploys them according to preset rules.
  • MarginFi: A Solana-based lending protocol that lets users borrow and lend digital assets on-chain.
  • Deposits and withdrawals: Core platform functions that allow users to add assets to or remove assets from crypto products or accounts.