Drift Protocol, a Solana (SOL)-based DeFi platform that suffered a hack attack worth over $280 million in recent weeks, will create a $150 million recovery fund for victims of the cyberattack.
Stablecoin giant Tether has also lent its support to this rescue fund.
In an official statement, Tether announced a strategic partnership with Drift Protocol and its partners to support user recovery efforts and relaunch the Drift platform following the security breach on April 1st that resulted in approximately $285 million in user losses.
Accordingly, Drift Protocol (DRIFT) also announced a recovery plan for affected users in its statement. The project is establishing a Recovery Fund to which Tether will contribute up to $127.5 million and other partners will add another $20 million.
“The plan aims to prioritize users and boost Drift’s return to the market and USDT’s growth on Solana.”
The fund will also be financed through a $100 million revenue-sharing program, ecosystem grants, and market-maker loans.
Drift stated that it is collaborating with law enforcement and blockchain analytics partners to track the stolen assets and that the recovered funds will be added to the pool.
Affected users will be given a special recovery token, separate from their current governance token, which can be used to claim their rights in the recovery pool.
“Recovery Token: To facilitate the distribution of recovery assets and provide liquidity opportunities to affected users, a new token will be issued to users affected by the April 1st attack. This new token is intended to be transferable.”
Tether CEO Paolo Ardoino stated: “Tether’s role in the digital asset ecosystem is to provide a platform ready to assist both individuals and institutions during the industry’s darkest moments. This collaboration reflects our confidence in Drift and its role in the DeFi ecosystem. The focus is on restoring user trust and supporting a strong relaunch with a structure aligned with real operation and long-term growth.”
Following the news, the price of DRIFT experienced a significant increase.
*This is not investment advice.
