Key takeaways
Loopscale runs an order book of individual, configurable loan agreements and calls itself one of the main lending venues on Solana.
Luke Truitt says the OOPS Y'all Earn strategy vault launched about three, four months ago and will be scaled with a couple of stablecoin partners over the next three to six months.
Truitt expects tokenized assets to grow through less obvious assets and capital-intensive projects in AI, robotics, manufacturing and energy rather than copied money market funds.
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Summary
The Solana lending venue wants to package tokenized assets into stablecoin yield products and eventually finance capital-hungry industries on chain.
Luke Truitt, cofounder and CEO of Loopscale, used his first appearance on Stabledash Live to describe how the Solana lending venue moved from manual credit deals to an order-book marketplace. He said the company launched its OOPS Y'all Earn strategy vault about three, four months ago and plans to scale it with stablecoin partners over the next three to six months.
From RWA loans to order books
Luke Truitt says his background is engineering and trading, including market making before he entered crypto. Loopscale first focused on replicating off-chain lending transactions fully on chain, mostly "old fashioned RWA backed loans," before pivoting over the following year or two to something more scalable.
Today everything under the hood is order book based, with individual loan agreements configured at origination, Truitt says. The platform has worked with tokenized credit and reinsurance products, and onboards assets either for holders seeking leverage and looping or for lenders looking for new yield.
“The old the old rails take a long time to underwrite. It's expensive, requires huge dollar amounts to make it profitable, etcetera. But doing it on chain, you can knock a lot of those barriers down”
Luke TruittStablecoin yield first
Truitt says what excites users is still stablecoin-related yield, so he looks for stablecoin-denominated assets or ones roughly pegged to a stablecoin. OOPS Y'all Earn is a strategy vault that lets Loopscale allocate to a list of underlying strategies and do the looping for users directly. He describes the company as a financial primitive layer connecting tokenized assets to investment products distributed through larger platforms.
Education and trust
The main misconception, Truitt says, is that users misunderstand what they are actually buying with tokenized assets. He adds that hacks over the last six months have reduced people's willingness to experiment, and that Loopscale is working on alternative ways to build confidence, pointing to insurance, guarantees and security measures.
Reinsurance as a model
Truitt credits Moonriver with showing why issuing an asset on crypto rails is exciting, by blending it for DeFi with good liquidity and a high target yield. He notes reinsurance is hard to find in a typical Charles Schwab account, and calls that a good model: growth will come from less obvious assets rather than tokenized treasuries.
Luke Truitt argues the world is becoming capital hungry and that on-chain issuance costs little to maintain compared with a transfer agent or brokerage. Loopscale is actively trying to pull financing for those projects into crypto and resell it to stablecoin holders, he says, though he gave no timeline.
Loop Scale, Figure, Dominion, and Aave Labs come up most.
- People
- Luke Truitt
- Drew Rogers
- Mary
- Zach Fowler
- Companies
- Loop Scale
- Figure
- Dominion
- Loopscale
- Aave Labs
- Morpho Labs
- Securitize
- Super Safe
- Yearn Finance
Ask AI about this conversation
Loopscale is a decentralized lending protocol on Solana. It matches lenders and borrowers directly for fixed-rate, overcollateralized loans across a wide range of collateral types, including yield-bearing and permissioned real-world assets.
