Drift Protocol partners with Tether for $150M recovery fund after exploit

Drift Protocol and Tether have announced a $150M collaboration to fund a user recovery pool and relaunch Drift Protocol after its April 1 exploit. The Polymarket contract on Solana exceeding $30 by April 19 sits at 99.8% YES.

The Drift Protocol exploit resulted in a $285-295 million theft attributed to DPRK actors. The collaboration with Tether, which includes contributions from the Solana Foundation, is designed to restore user funds and stabilize the protocol. The Solana price for April 19 contract currently trades at 99.8% YES.

The April 19 market, which resolves in 3 days, spiked 33 points overnight, moving from 66% to the current 99.8%. The jump coincides with the recovery fund announcement and the expectation that $150M in restitution will limit contagion damage to Solana’s broader ecosystem. Daily USDC volume on this contract is $5,062.

At 99.8% YES, buying a YES share at 99¢ pays $1 if Solana finishes above $30, so the upside is minimal, but the contract’s movement from 66% to near-certainty in one session shows how directly the market priced in the recovery announcement. The collaboration’s outcome could also affect sentiment on longer-dated Solana contracts.

Watch for announcements from the Solana Foundation on network upgrades or further contributions to the recovery pool. Details on Drift Protocol’s relaunch timeline and the mechanics of user restitution will determine whether the current pricing holds.

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