I just noticed that Loopscale on Solana has expanded its list of collateral assets. Now, LPs from Orca and Raydium can be used for borrowing.



The interesting part is that Loopscale's architecture does not combine multiple LPs into a single pooled loan, but instead values each LP position independently. That means it considers the price range, fee levels, and the underlying assets of each LP separately.

According to the announcement, this move could unlock over $1 billion in new liquidity. Quite impressive when you think about the small capital that was previously "locked" in LPs and couldn't be used as collateral.

Basically, it opens up a new way to utilize LP tokens. Instead of just holding them for yield farming, you can now leverage them further by borrowing against those LPs. Loopscale is building a pretty interesting credit market for Solana DeFi.
SOL0,3%
ORCA1,54%
RAY0,11%
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