Tether is committing up to $127.5 million to support the recovery and relaunch of Drift Protocol following its April exploit. This forms part of a wider $150 million recovery plan. The platform will transition its settlement infrastructure from USDC to USDT and implement a revenue-linked model to reimburse affected users over time.
The stablecoin company Tether has committed up to $127.5 million to support the recovery of the Drift Protocol after its 1 April exploit. This funding is part of a broader recovery plan valued at approximately $150 million.
Alongside the capital, Drift will transition its primary settlement asset from USDC to USDT as it prepares to resume operations. This positions Tether’s stablecoin at the center of the platform’s trading infrastructure on Solana.
The recovery framework combines capital support with a revenue-linked model designed to restore user balances over time. Rather than relying solely on upfront funding, the plan ties recovery to ongoing trading activity.
Under this structure, exchange revenue will be used directly to reimburse affected users. Additional funding will be deployed progressively based on platform performance.
The transition to USDT comes at a time when stablecoin infrastructure is facing increased scrutiny in exploit scenarios. Recent reports have raised questions about how quickly issuers can respond to illicit fund flows, particularly in cross-chain environments.
Drift halted operations on 1 April after confirming an active exploit, with early estimates placing losses at approximately $285 million. The latest update signals progress toward a relaunch, though no firm timeline has been provided.
