Drift: Receives $147.5 Million Funding Support from Tether and Others for User Recovery

April 16: Drift Protocol announced it has secured backing from Tether and other partners to support recovery efforts for users affected by its April 1 exploit. Tether is committing $127.5 million, while other partners are contributing $20 million as part of the support package. This includes a $100 million revenue-based lending credit line, ecosystem grants, and loans for liquidity providers. Drift will establish a dedicated user recovery pool to gradually address $295 million in outstanding user losses as transaction fees accrue. It will also distribute separate transferable recovery tokens to affected users, representing claims on the recovery pool. Additionally, Drift is rebooting its protocol, has engaged auditors Ottersec and Asymmetric, and is migrating its settlement layer from USDC to USDT. The April 1 exploit resulted in approximately $295 million in stolen assets, but the insurance fund remains unaffected.