In the aftermath of a substantial exploit, Drift Protocol has announced plans to relaunch with Tether's USDT as its primary settlement layer, facilitated by a substantial funding package of up to $147.5 million from Tether and its partners. This deal comprises $127.5 million from Tether and $20 million from additional partners, aimed at supporting user recovery and rebooting the platform. The exploit, linked to a North Korean group, resulted in the loss of over $270 million in client assets on April 1.
The funding package includes a revenue-linked credit facility, ecosystem grants, and loans to market makers, with a portion of trading revenue allocated to a recovery pool to cover user losses over time. The transition from USDC to USDT comes amid growing competition in the stablecoin market, with USDT seeking to solidify its position. Drift, the largest decentralized perpetual futures exchange on Solana, will utilize the funding to restore user funds and resume operations, positioning USDT at the core of its trading infrastructure.