Loopscale is a lending protocol on Solana that swaps the usual pooled-liquidity model for an order-book design. Instead of everyone sharing one big pool (and the same risks), borrowers and lenders match directly at fixed rates and fixed terms inside isolated markets. The result aims to be clearer pricing, better risk control, and support for a wider range of on-chain assets.
What is Loopscale?
Most DeFi lending protocols use pools: lenders deposit, borrowers draw, and a utilization curve sets the variable interest rate. That’s simple to start with—but it blends everyone’s risk, prices collateral poorly, and often leaves idle capital dragging returns. Instead of variable rates from a shared pool, Loopscale uses a Credit Order Book. Each market prices its own collateral and terms. Lenders post offers, borrowers take them. Because markets are isolated, problems in one market don’t spread to the rest.
Loopscale replaces that with a Credit Order Book:
- Direct matches: a borrower’s offer matches a lender’s quote.
- Fixed-rate, fixed-term: predictable cost for borrowers and predictable yield for lenders.
- Isolated markets: each collateral/loan market stands alone (no cross-asset contagion).
- Per-asset risk pricing: volatile collateral can demand higher rates, safer collateral can secure better terms.
Features & Products
- Credit Order Book
Match borrowers and lenders directly at fixed rates and fixed duration. Lender APR equals borrower APR—no pool spread. Terms are transparent before you click confirm, and each market is isolated, so risk is contained to that asset and set of terms.
- Broad Asset Support
Lend or borrow using SPL tokens, Token-2022 assets, LP tokens, staked assets (LSTs/LRTs), and external yield-bearing tokens. Each market decides eligible collateral and parameters, enabling flexible, asset-specific credit without waiting for monolithic pool approvals. - Virtual Markets (for lenders)
Define a ruleset—acceptable collateral, target APRs, and durations—and Loopscale aggregates matching opportunities into one Virtual Market. This concentrates liquidity, reduces fragmentation, and still lets you refine settings over time as markets deepen and specialize. - Loopscale Vaults (passive lending)
Deposit to a curated Vault and earn lending yield passively. A curator manages collateral lists, LTVs, durations, and allocations across markets. Liquidity buffers can enable instant withdrawals; otherwise, exit via a queue or immediate withdrawal with a small fee.
- Loops (leveraged yield strategies)
Get one-click leveraged exposure to yield assets (e.g., mSOL, LP tokens, PTs, RWAs). Loops borrow more of what you deposit, compounding yield. Fixed-rate loans help mitigate rate volatility, but monitor price moves, borrow APR, and DEX liquidity to manage liquidation risk.
- Borrow (fixed-rate, isolated)
Choose collateral, set a comfortable Loan-To-Value, and borrow at a fixed rate for 1D/1W/1M/3M (offers permitting). Loans are over-collateralized with Max LTV and Liquidation LTV safeguards. Healthy loans can auto-refinance at term end; manage health in your Portfolio.
- Advanced Lending (hands-on)
Place limit offers with custom rules: eligible collateral, target APR by duration, and whether to lend idle capital via Optimized Yield. Liquidity is reusable across matching markets. Defaults trigger automated liquidation of borrower collateral, returning recovered funds to you.
- Points, Bonuses & Referrals
Earn Loopscale Points by lending, borrowing, looping, and referring users (5% of their non-referral points). Watch for bonus multipliers on positions and external partner points (e.g., Solayer, Meteora, marginfi). Beta Points recognize pre-launch activity separately.
Fees & Pricing
Loopscale uses market-defined fixed APRs instead of utilization curves. Your real costs/returns appear in the loan preview for the specific market/term you choose.
What to check before you confirm:
- Borrow APR / Lend APR: fixed for the term once matched.
- LTV & liquidation terms: vary by market; higher LTVs usually mean higher rates and tighter liquidations.
- Any protocol or market-level fees: shown in the transaction/offer flow (these can differ by market or venue).
- Execution & network costs: Solana fees are typically small, but still apply.
Tip: Do a small test loan first to understand the exact APR, collateral flow, and liquidation thresholds in your chosen market.
Risks and Security
- Interest-rate risk: Your fixed APR can become better or worse than future market rates, especially on longer terms. Prefer shorter terms while learning and only refinance when it clearly lowers cost.
- Liquidity risk: Thin DEX liquidity can cause high slippage or slow exits for certain assets. Stick to widely traded tokens, test with small sizes, and check AMM depth before opening/closing.
- Liquidation & timing risk: If collateral value (after accrued interest) drops below the liquidation LTV—or an auto-refi fails post-maturity—your position can be liquidated. Use conservative LTVs, monitor health, add collateral/repay early, and set reminders before term ends.
- Asset/counterparty risk: Stablecoins can depeg; issuers may blacklist; teams or markets can underperform. Favor high-quality assets, diversify, and remember external risks are outside Loopscale’s control.
- Operational risk (smart contracts & oracles): Audited code can still have bugs; oracles can misprice and trigger false liquidations. Start small, prefer markets with robust oracle feeds, track audits/announcements, and use only official links.
User Experience (UX)
The UI centers on clarity:
- Markets page shows available collateral types and terms.
- Offer tickets highlight APR, duration, LTV, and liquidation details before you confirm.
- Virtual Markets simplify quote placement across many similar markets.
- Vaults offer one-click passive exposure for newcomers.
Beginners will likely appreciate the fixed-rate predictability and isolated-risk layout; advanced users get the knobs they want (per-asset pricing, asset-specific terms).
Customer Support
- Help center & docs: Start with the official Docs/FAQ for plain-English guides on Markets, LTVs, Liquidation LTV, Vaults, Loops, refinancing, and Points. Most “how do I…?” questions are answered there with screenshots.
- Community channels: Join the official Discord/X/Linkedin for quick Q&A, release notes, and market/feature announcements. Use the links from the official website only to avoid phishing or impostor groups.
- Status & transparency: Look for a status page or #announcements for maintenance/incidents. If support asks for logs or screenshots, redact sensitive info before posting publicly.
- Response time: Varies by channel and load. For quicker help, use a descriptive title (“Refi failure on SOL/USDC market, tx hash…”) and attach the transaction link.
Mobile App
- No install required: Loopscale runs in your mobile browser (Safari/Chrome). Bookmark the official URL and consider Add to Home Screen for a near-app experience.
- Wallet connections: Use a mobile Solana wallet (e.g., Phantom/Backpack mobile). If prompted to connect/sign, ensure the prompt matches the official domain. Keep your wallet app updated.
- On-the-go tasks: Mobile is great for checking health factor, adding/removing collateral, quick repayments, depositing/withdrawing from Vaults, and monitoring Loops. For building complex Advanced Lending rules or deep due-diligence, switch to desktop.
- Safety on mobile:
- Open Loopscale only from bookmarked official links.
- Avoid public Wi-Fi for signing transactions.
- Double-check Loan To Value, duration, and APR on small screens before confirming.
- If something looks off, cancel and recheck on the desktop.
- Notifications & reminders: Set calendar reminders before loan maturity to review auto-refi or to top up collateral. Enable wallet/app notifications to see confirmations and health warnings promptly.
Conclusion
Loopscale replaces pooled, variable-rate lending with fixed-rate, fixed-term matches in isolated markets, so you see APR, duration, and LTV up front and risk is priced per asset. Beginners can earn passively with Vaults; advanced users can set terms via Advanced Lending or use Loops. Start small, use liquid collateral, keep LTV conservative, set maturity reminders, and scale as you learn—earning Points and partner rewards along the way.
How do I know if my borrow came from a Vault?
UI support is being added. Today, many markets use Vault liquidity by default. If you want to avoid Vaults or choose specific lenders, use Advanced Lending to set custom rules.
What are Points and how do I earn them?
Loopscale Points track your participation. You earn them for lending, borrowing, looping, and referrals (you get 5% of your invitees’ non-referral points). Some positions also earn external partner points.
Can I withdraw my lending funds early?
Yes. You can withdraw unused liquidity anytime. If your funds are tied in an active loan, you can sell the loan on the order book to exit early and claim accrued interest.
