Drift Protocol Ditches Circle's USDC For USDT After $280M Hack, Unveils $150M Recovery Plan

Drift Protocol (DRIFT), the trading platform that was hacked for $280 million earlier this month, announced that it’s going to move its settlement layer from Circle’s (CRLC) USDC stablecoin (USDC) to Tether (USDT) in its plan for recovery. 

In its user recovery update, the Solana (SOL)-based project said it is collaborating with Tether and other partners in a $150 million recovery plan to a relaunch with USDT at the center and compensate users that were impacted by the $280 million exploit.

Under the proposal, Tether would contribute up to $127.5 million, while other partners are expected to provide around $20 million. The package includes a $100 million revenue-linked credit facility, along with ecosystem grants and loans to market makers, the company said.

DRIFT’s price shot up by over 18% in the last 24 hours to around $0.50, getting close to breaking even since the April 1 hack. The token hit an all time low of $0.20 on April 10, and has gained over 95% since then. 

Retail sentiment around the DRIFT token on Stocktwits rose to ‘bullish’ from ‘neutral’ territory over the past day, accompanied by chatter at ‘normal’ levels. Retail sentiment around USDC trended in ‘neutral’ territory over the past day, while retail sentiment around USDT surged to ‘extremely bullish’ from ‘bullish’ territory. 

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