Tether Steps In With $150 Million Plan

Tether steps in with a $150 million plan to aid Drift recovery, prioritizing user restitution and a safe platform relaunch on Solana. The plan links recovery funds to Drift’s trading revenue.

Tether Leads Support to the $150M Drift Recovery Plan

Tether announced a collaboration with Drift Protocol and the Solana Foundation to back a recovery plan worth up to $150 million. This comes after Drift’s exploit that took place on April 1st, causing approximately $285 million in user losses.

Recovery Plan Details

• The plan links recovery funds to Drift’s trading revenue, ensuring payouts are in line with the platform’s activity.
• Fees from trades will directly fund user balances, with capital released progressively based on performance metrics.

Drift Shifts to USDT Settlement For Relaunch

Drift will transition its settlement asset from USDC to Tether’s USDT upon relaunch, integrating more than 128,000 users and 35 ecosystem teams into USDT-based perpetual trading.

Benefits of USDT Integration

This move enhances liquidity and efficiency, positioning USDT as a core settlement option on Solana.

Key Takeaways

• Tether is backing a $150 million recovery plan for Drift Protocol.
• The plan links recovery funds to Drift’s trading revenue, ensuring gradual and performance-based recovery.
• Drift will relaunch on Solana with USDT as its primary settlement asset.
• The recovery plan stabilizes a key Solana DeFi player, potentially boosting ecosystem activity and investor confidence.

Frequently Asked Questions

What is the purpose of Tether's $150 million plan?

The plan aims to aid Drift recovery, prioritizing user restitution and a safe platform relaunch on Solana.

How will the recovery plan be funded?

The plan will be funded by fees from trades, with capital released progressively based on performance metrics.