Loopscale

Loopscale is a modular, order book-based lending protocol on Solana that supports overcollateralized borrowing and lending across a broad set of digital assets, including staked tokens, liquidity provider positions, memecoins and tokenized real-world assets. Instead of pooled liquidity with algorithmically set utilization-based rates, Loopscale matches lenders and borrowers directly through a credit order book: lenders post offers specifying eligible collateral, required interest rate, loan duration and maximum loan-to-value, and borrowers match against those offers. Each loan is isolated, so there is no cross-collateral contamination, and because lend rate equals borrow rate the protocol claims improved capital efficiency, higher LTVs and better yields relative to pool-based designs.

The product surface includes several components. Loopscale Vaults are curated lending vaults, each with a defined strategy and risk profile, managed by Loopscale Labs or third-party curators who allocate depositor capital across the protocol's fixed-rate markets and set eligible collateral, LTV ratios, interest rate curves and duration allocations; high-risk parameter changes are subject to a 24-hour cooldown so depositors can exit. "Loops" provide one-click leveraged yield strategies in which users deposit yield-bearing assets, borrow correlated assets and redeposit them, executed atomically with flash loans, swaps and loan origination, at fixed rates and selectable durations. Advanced Lend allows fully customizable collateral and rate parameters, and a Loopscale USDC vault lends into the protocol's fixed-rate borrow market while deploying idle liquidity to variable-rate lending protocols.

DefiLlama tracks Loopscale as a Solana-only lending protocol with $88.89m in total value locked and $55.16m in active loans, ranking #26 among lending protocols it covers, with audits listed as present. The company maintains public code repositories under the LoopscaleLabs GitHub organization, including an audits repository and an RWA Token Program described as a wrapper and extension for Solana Token Extensions that standardizes permissioned tokens on SVM blockchains.

Business model

Loopscale operates a lending protocol whose economics come from borrower interest paid on fixed-rate loans. DefiLlama's accounting shows fees generated by Loopscale Vaults — borrower interest paid into vault strategies — with curator fees taken out of that flow and no protocol revenue retained by Loopscale to date (cumulative revenue $0 against $1.03m cumulative fees). The company also positions the protocol as infrastructure for third parties: curators earn fees by managing lending strategies and scale revenue with growing deposits, and builders can deploy vaults using Loopscale's code and distribution.

Interest paid by borrowers on fixed-rate loans flows into vault strategies; curators take a fee from that flow. DefiLlama's methodology notes that Loopscale Vaults generate fees but no protocol revenue, and reported cumulative and 30-day protocol revenue is $0.

Traction

Per Solana Compass, Loopscale has grown since its April 2025 launch to over $141 million in deposits and more than $1 billion in cumulative borrowing volume, with RWAs at roughly 40% of deposits by Q1 2026. DefiLlama independently reports $88.89m TVL (all on Solana), $55.16m in active loans, $1.03m in cumulative fees, $3.26m annualized fees, 23 tracked yield pools and a 3.19% average supply APY, and quarterly borrow interest of $501.17K in Q2 2026 and $527.67K in Q3 2026.

Latest developments

In June 2026 Loopscale expanded its Earn offering with curated vaults, bringing externally managed lending strategies to Solana; each vault has a designated curator allocating depositor capital across Loopscale's order-book markets, with a 24-hour cooldown on high-risk parameter changes. As of the most recent DefiLlama snapshot, TVL was $88.89m (down about 1% over 30 days) with $55.16m in active loans and $276,766 in 30-day fees, none of it retained as protocol revenue.