Drift Protocol has revealed a $150 million support package led by Tether and several partners to aid user recovery and relaunch its decentralized trading platform following a large-scale exploit that struck the protocol on April 1. The funding plan, one of the largest in Solana ecosystem recovery efforts to date, targets both compensating affected users and strengthening platform security.
Major recovery package and new user token
Tether is backing the package with $127.5 million, joined by other partners, combining for almost $150 million in support. The plan includes a $100 million revenue-linked credit facility, an ecosystem grant, and targeted loans to designated market makers. USDT will become the primary settlement asset for Drift Protocol when trading resumes.
A dedicated user recovery pool will be funded both by exchange revenue and direct contributions from partners. Drift will augment this pool with any funds recovered via ongoing law enforcement work and blockchain forensics.
To distribute recovery funds, Drift will introduce a new transferable token for those affected by the exploit. Further details on token distribution and mechanics are expected soon.
Drift stressed that it is “announcing a collaboration with Tether and other partners totaling up to nearly $150 million to support a relaunch with USDT at the center, and a path to user recovery.”
On April 1, attackers drained between $270 million and $285 million from Drift’s core vaults. Blockchain analytics from Elliptic have connected the breach to North Korean state-linked actors using prolonged social engineering to compromise devices via malicious apps and exploit Solana’s durable nonce feature for unauthorized vault access.
In the aftermath, Drift’s total value locked dropped from $550 million to about $230 million. The protocol’s native token fell by over 30% following the incident.
Enhanced security and shift to USDT settlement
Prior to relaunching, all protocol components will undergo independent security audits by OtterSec and Asymmetric Research. Drift is also adding a community-administered multisig structure for safeguarding core assets, requiring heightened signer verification via dedicated devices and out-of-band transaction checks.
Tether has committed to a USDT support facility for market makers, aiming for immediate deep liquidity and stable trading conditions when the protocol restarts.
The adoption of USDT for settlements marks a deliberate shift after Circle, the issuer of USDC, chose not to freeze stolen assets during the attack. Circle has clarified its stance, with Chief Strategy Officer Dante Disparte explaining that asset freezes can only be executed on the basis of legal orders, not internal discretion.
“When Circle freezes USDC, it is not because we have decided, unilaterally or arbitrarily, that someone’s assets should be taken from them. It is because the law requires us to act,” wrote Dante Disparte, Circle’s CSO.
Tether’s role in the recovery plan underscores an emerging trend among stablecoin issuers to serve as financial backstops during critical incidents in the crypto ecosystem. However, the scale of losses and the need for outside intervention highlight ongoing challenges around operational security, even for advanced protocols such as Drift.
Drift Protocol, a decentralized derivatives exchange built atop Solana, is known for delivering high-speed, on-chain trading and perpetual contracts. This comeback plan represents Drift’s initial step towards fully restoring user funds and reestablishing trust in its platform.
