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Drift Protocol has announced a collaboration with Tether (USDT) and other partners totaling nearly $150 million to fund user recovery and a protocol relaunch following its April 1 exploit on Solana (SOL).
The package includes a $100 million revenue-linked credit facility, an ecosystem grant, and loans to designated market makers. USDT will serve as the settlement asset when the protocol relaunches.
The funds will support a dedicated user recovery pool fed by exchange revenue and committed support capital. Drift stated that any assets recovered through ongoing law enforcement and blockchain forensics efforts will also flow into the pool.
To distribute recovery assets, Drift will issue a new transferable token to users affected by the April 1 exploit. The team said additional details on token mechanics will follow in the near term.
The April 1 attack drained between $270 million and $285 million from Drift’s vaults. Blockchain analytics firm Elliptic attributed the operation to North Korean state-linked actors who spent six months infiltrating the protocol through social engineering.
Before relaunching, every protocol component will pass independent audits from OtterSec and Asymmetric Research. Drift will also introduce a community-governed multisig for core protocol assets, requiring all signers to use dedicated devices with transaction content verified outside the primary signing interface.
Tether has proposed extending a USDT support facility to market makers to ensure deep liquidity from day one. The shift to USDT settlement marks a notable pivot after Circle declined to freeze stolen USDC during the original attack.
Drift described the plan as its first step toward making users whole over time.
Read the Original story Drift Protocol Announces $150M Tether-Backed Plan for Relaunch and User Recovery by Lockridge Okoth at beincrypto.com