This Incident Recovery Update will address the security measures for relaunch as well as the framework taking shape to advance a full user recovery. We expect to additional details on each element of the recovery and relaunch with the community as they become available.
Our first and most important priority is the Drift community. We have outlined below key elements of a recovery framework, which will be designed to provide impacted users with a resolution as the protocol rebuilds.
Drift is undergoing a full protocol reboot with security as the foundation. Prior to go-live, each component will pass through independent audits. The Protocol will implement hardened operational security practices across the entire stack – from key management, to infrastructure, to team access controls.
Protocol relaunch is contingent upon completion of two independent audits from industry leaders:
Drift will introduce a new community-governed multisig for the management of core protocol assets, with participation from established leaders across Solana core infrastructure, DeFi, security, and liquidity - alongside key Drift ecosystem contributors.
Under the new framework, all multisig signers will be required to operate on dedicated signing devices, with transaction content independently verified outside the primary signing interface before any signature is executed. Timelocks will be enforced on all critical administrative actions, paired with real-time alerts so that anomalous proposals are flagged before they can be executed. Durable nonces will be disabled for all signers. Signer identities will be maintained on a need-to-know basis.
At relaunch, Drift will migrate from USDC to USDT as its settlement layer . Tether will extend a USDT market-making support facility through designated market makers to ensure deep, liquid markets from day one.
The following table provides a detailed breakdown of the assets affected by the exploit and the funds that remain secure.
Comprehensive breakdown of tokens withdrawn from the protocol during the incident
Note: In support of asset recovery, Drift is actively developing a Bounty program with support from Arkham and Bybit. Drift also expects to partner with a leading Web3 blockchain intelligence firms for the phase of this program and will updates as they become available.
Breakdown of tokens not withdrawn from the protocol during the incident
The Insurance Fund is designed to maintain solvency in cases of trading-related bankruptcies (e.g. liquidations or borrower defaults where collateral is insufficient). It is funded by stakers who take on this specific risk in exchange for yield. The Insurance Fund is unaffected and all Insurance Fund depositors’ assets remain intact and will be available to depositors upon protocol relaunch.
The full story
This article is one source in a clustered incident — the cluster page carries the summary, timeline and every other outlet covering it.
