Following a significant exploit that resulted in the loss of over $270 million in client assets, Drift Protocol has announced a proposed funding package of up to $147.5 million from Tether and its partners. The funding will be used to support user recovery and relaunch the platform as a USDT-based perpetual futures exchange on Solana, replacing Circle's USDC as its settlement layer. The package, which includes a revenue-linked credit facility, ecosystem grants, and loans to market makers, aims to cover roughly $295 million in user losses over time.
A portion of trading revenue and committed capital will be directed towards a recovery pool. The exploit, linked to a North Korea-based group, occurred on April 1 and resulted in the loss of approximately $270 million. Circle, the issuer of USDC, faced criticism for its handling of the exploit, with some arguing that the company could have acted faster to freeze funds and prevent the attacker from transferring assets.
In contrast, Tether has a history of freezing assets linked to hacks and illicit activities. The funding package also includes plans for fee reductions and user incentives tied to Drift's transition to USDT, as well as liquidity support for designated market makers. The move is expected to position USDT at the center of Drift's trading infrastructure and provide a pathway for the platform to restore user funds and resume operations.