Drift Protocol Lines Up $147M User Recovery Pool Backed by Tether and Partners

Drift Protocol says it has secured a $147 million support package led by Tether to fund user recovery efforts following the April 1 attack. Tether plans to provide $127 million, with additional partners contributing $20 million. The package includes a $100 million revenue-linked credit line, ecosystem grants, and loans to market makers. Drift said it will set up a user recovery pool to work down $295 million in outstanding user losses over time, and will distribute transferable recovery tokens to affected users. As part of the protocol's restart, Drift said audits have been completed by Ottersec and Asymmetric. The settlement layer will also migrate from USDC to USDT. The attack resulted in roughly $295 million in stolen assets, while Drift said its insurance fund was not impacted.