Orca and Loopscale Merged to Create Formation
The new entity aims to direct decentralized capital toward AI, robotics, and energy infrastructure.
Updated on Oct. 7, 2026 in Startups
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Should decentralized finance platforms expand into financing sensitive industries like defense and energy?
Orca and Loopscale have combined into a new firm called Formation. This entity plans to leverage decentralized finance mechanisms to secure capital for AI, energy, robotics, and defense sectors.
Why it matters
Formation seeks to bridge the gap between decentralized liquidity protocols and large-scale industrial financing. This shift targets the deployment of capital into tangible real-world sectors that require significant funding.
The underlying Loopscale protocol operates on an order-book model where lenders and borrowers list specific terms for matching. This structure recently provided access to $1 billion in liquidity through the integration of Orca and Raydium liquidity provider tokens.
The players
Formation
A newly formed entity resulting from a merger between Orca and Loopscale, focused on financing AI, energy, robotics, and defense sectors.
Loopscale
A decentralized finance protocol built on Solana that utilizes an order-book model for fixed-rate lending.
Orca
A decentralized liquidity protocol providing the assets and tokens that underpin the new entity's financial operations.
The details
Loopscale functions as a decentralized borrowing and lending protocol on the Solana blockchain—a high-throughput distributed ledger designed for fast transactions. It utilizes an order-book model where lenders define their desired yield and risk parameters, and borrowers post their acceptable terms. The protocol serves as an automated clearinghouse, pairing matching offers to execute fixed-rate loans without traditional intermediaries.
Timeline
March 2025: Loopscale integrated Orca and Raydium liquidity provider tokens.
2025: The Loopscale protocol launched for public use.
October 2026: The formation of the new entity was officially announced.
The Tech Race
Formation marks a transition by decentralized platforms toward financing heavy industry and hard tech. This strategy places the new entity in competition with traditional private credit firms seeking to capitalize on AI and robotics demand.
Formation intends to shift institutional-scale capital toward the AI, robotics, and defense industries. For participants in the Solana ecosystem, this merger signals a transition toward using existing liquidity pools for specialized, high-capital-intensity industrial development.
The takeaway
Formation aims to transform the utility of decentralized order-book protocols by applying them to physical industrial sectors. Readers should monitor the entity's first public financing deal or partnership announcement to confirm the viability of this model for large-scale infrastructure projects.
Further reading
For more on emerging ventures moving into industrial financing, see our latest analysis of Startups.
Live Poll
Should decentralized finance platforms expand into financing sensitive industries like defense and energy?
