Project 0 Resumes Operations After Drift Protocol Hack

Decentralized lending protocol Project 0 has announced the resumption of its operations. According to Foresight News, the platform had previously halted activities and initiated a deleveraging process following a hack on the Drift protocol. Project 0 reported that the remaining socialized loss amounts to approximately $1.9147 million, which will be distributed across the credit pool, resulting in an average asset write-down of 2.61% for lenders. The write-down percentages vary by asset risk level, with USDC, SOL, and USDT experiencing a 1% reduction, mainstream assets like BTC and ETH seeing a 2.61% decrease, and WIF, BONK, and governance tokens facing a 6.62% reduction. Project 0 noted that as Drift assets are gradually unlocked and returned to affected users, the actual loss will be less than the stated baseline figures. Previously, Project 0 co-founder MacBrennan explained that the protocol employs a unified credit pool to enable cross-protocol margin functionality, which is a core mechanism of P0. However, some community members expressed dissatisfaction, stating that they were impacted despite not directly participating in Drift lending.