Drift: Receives $147.5 Million Support from Partners such as Tether for User Fund Recovery

BlockBeats News, April 16th, Drift announced that Drift Protocol has received support from Tether and other partners. Tether is planning to contribute $127.5 million, while other partners are planning to contribute $20 million to jointly support the user recovery efforts post the April 1st exploit. Additionally, the plan includes a $1 billion income-generating credit line, ecosystem grants, and loans to market makers. In the initial stages, a portion of the trading platform revenues and committed funds will be collectively injected into the user recovery pool to gradually reimburse the $295 million in outstanding user losses. Any recovered stolen funds will also be added to this recovery pool.

Meanwhile, Drift will issue distinct recovery tokens to affected users (separate from the DRIFT governance token) to represent claims to the recovery pool. These tokens will be transferable, and specific mechanisms will be announced later. Currently, Drift is undergoing a protocol reboot, has engaged Ottersec and Asymmetric for audits, and is migrating the settlement layer from USDC to USDT. Tether will provide USDT market support through a designated market maker to ensure a liquid order book upon launch. The exploit incident previously resulted in the theft of assets worth approximately $295 million, while the insurance fund assets remain unaffected.