Velocity begins DFX token claims following $295M Drift hack

Velocity, formerly known as Drift, has launched a compensation program for users affected by a $295.4 million exploit on its Solana-based exchange in April. The protocol has introduced DFX, a recovery token where one DFX is linked to each $1 of verified USDT lost.

Due to the current size of the recovery pool, which holds approximately $3.11 million, the initial redemption value is roughly $0.0104 per DFX. This means a user who lost $10,000 would only receive about $104 if they choose to redeem immediately. The compensation pool is expected to grow through several channels, including Tether’s commitment of $127.5 million, $20 million in pledges from strategic partners, and a portion of Velocity’s net protocol revenue.

Users can claim DFX by connecting their associated wallets through January 1, 2028. Once claimed, DFX can be redeemed for USDT at the prevailing rate or traded on secondary markets like Raydium. Any DFX tokens remaining unclaimed after the deadline will be permanently burned.