Loopscale on Solana has just expanded the capabilities of its lending platform by adding LP positions from Orca and Raydium as acceptable collateral. This is a quite interesting move, as it allows users to monetize their liquidity positions without withdrawing them from pools.



Why is this important? Traditionally, LPs were locked in pools without the ability to use them as collateral. Loopscale changes this approach thanks to its order book-based architecture, which evaluates each position individually. Unlike centralized pool lending models, the system can account for the specifics of each LP: price ranges, fee levels, underlying assets.

The result? The protocol has unlocked access to over $1 billion in liquidity that was previously nearly inactive. For those holding LPs in these popular DEXs, this means a new opportunity to earn from lending while maintaining their liquidity positions.

This is one of those moments when DeFi infrastructure becomes more flexible. If you actively trade on Orca or Raydium, it’s worth paying attention to how you can optimize your positions through such protocols.
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