Tether is leading a $150M recovery initiative for Drift Protocol; the plan will also shift the perp DEX’s primary settlement asset to USDT on Solana.
Tether announced a strategic collaboration with Drift Protocol on Thursday, April 16, to support user recovery and facilitate the platform’s relaunch following the exploit earlier this month.
The recovery plan is backed by up to $150 million in combined support, including up to $127.5 million from Tether, according to the announcement from the firm. The structure links funding to trading activity on Drift’s platform, enabling user balance restoration as the exchange resumes operations and generates revenue.
As the Defiant reported previously, the perpetual futures DEX was hacked for over $270 million in crypto on April 1.
USDT Settlement
As part of the relaunch, Drift will transition its settlement asset from USDC to USDT, bringing over 128,000 users and 35 ecosystem teams, including Gauntlet, Neutral, and M1, onto USDT-based trading on Solana. The move positions USDT as a primary settlement asset on what was Solana’s largest perpetual trading venues.
Tether CEO Paolo Ardoino stated the investment and collaboration reflects confidence in Drift’s role in DeFi and emphasizes aligning recovery with real activity and long-term growth.
Sources: Tether
This article was generated automatically by The Defiant’s AI news system from publicly available sources.
Source: https://thedefiant.io/news/defi/tether-commits-over-usd127m-to-drift-protocol-recovery-plan
