Velocity Drift protocol exploit compensation

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

As of early October, the redemption process has officially launched. 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, representing a recovery of about 1.04% of verified losses. The pool is expected to grow through 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 associated wallets through January 1, 2028. Redemptions involve a simultaneous transaction where DFX tokens are burned in exchange for USDT from the pool. Users may choose to redeem only a portion of their tokens, allowing the remainder to participate in future deposits and revenue sharing. Any DFX tokens remaining unclaimed after the deadline will be permanently burned.