Following a significant exploit that resulted in the loss of over $270 million in client assets, Drift Protocol has announced a funding package of up to $147.5 million from Tether and its partners. This investment will be used to recover user funds and relaunch the platform as a USDT-based perpetual futures exchange on Solana, replacing Circle's USDC as its settlement layer. The deal comprises 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 exploit, which occurred on April 1, was carried out by a North Korea-linked group and resulted in the loss of roughly $295 million in user funds.
Drift's governance token, DRIFT, has since lost approximately 70% of its value. 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 to enhance trading depth at relaunch. This move positions USDT at the center of Drift's trading infrastructure, providing a pathway to restore user funds and resume operations.