Following a significant exploit, Drift Protocol has announced plans to relaunch using Tether's USDT as its settlement layer, backed by a proposed funding package of up to $147.5 million from Tether and its partners. This deal, which includes a revenue-linked credit facility, ecosystem grants, and loans to market makers, aims to support user recovery and reboot the platform as a USDT-based perpetual futures exchange on Solana. The exploit, linked to a North Korean group, resulted in losses of over $270 million on April 1, prompting Drift to seek funding to cover user losses and restore operations. The funding package will also facilitate fee reductions and user incentives tied to Drift's transition to USDT, as well as provide liquidity support to designated market makers.
This move marks a significant shift for Drift, which previously used Circle's USDC as its settlement layer, and positions USDT at the center of its trading infrastructure.