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Drift Protocol Opens Hack Recovery Fund Paying Near One Cent Per Dollar Lost

(2 hours ago) · 1 source · Summarized by CryptoBipto

Drift, a decentralized trading protocol, has opened a recovery process for users affected by a hack. Reports indicate that the recovery rate is approximately one cent for every dollar lost, meaning affected users would receive only a small fraction of their losses.

WHY IT MATTERS

When a crypto protocol gets hacked, users can lose the funds they deposited. Think of it like a bank robbery, except in decentralized finance (DeFi) there is usually no government insurance to guarantee your deposits. In this case, Drift is offering affected users about one cent back for every dollar they lost — meaning if someone lost $1,000, they would get roughly $10 back. This illustrates one of the key risks of using DeFi platforms: if something goes wrong, there may be no guarantee of getting your money back, and any recovery process can return only a fraction of what was lost.

Drift, a decentralized perpetual exchange, experienced a security breach that resulted in user fund losses. The protocol has now opened a recovery or claims process for affected users, but the recovery rate appears to be roughly one percent of the total amount lost per user.

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SOURCES

  • cryptoslate.com

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