Drift Protocol has announced securing financial backing from Tether and other partners to aid in user recovery following an attack on April 1. According to BlockBeats, Tether plans to contribute $127.5 million, while other partners will provide $20 million. This support includes a $100 million revenue-linked credit line, ecosystem grants, and loans to market makers. Drift aims to establish a dedicated user recovery pool to address the $295 million in outstanding user losses as trading revenue grows.
Additionally, Drift will issue independent recovery tokens to affected users, representing claims on the recovery pool and allowing for transferability. The protocol is currently undergoing a restart, with audits conducted by Ottersec and Asymmetric, and is transitioning its settlement layer from USDC to USDT. The attack resulted in the theft of assets valued at approximately $295 million, although insurance fund assets remained unaffected.