Drift Protocol is under fire from its community after proposing to convert all remaining assets linked to its April exploit into USDT. The proposal, known as DIP-10, aims to liquidate residual spot assets in the protocol's borrow/lend pool, consolidating them into a stablecoin-denominated recovery reserve. This move is intended to mitigate market volatility and provide a clear accounting framework for affected users.
However, the proposal has sparked criticism from users who oppose the forced conversion of volatile assets like SOL, ETH, and BTC into stablecoins, arguing it locks in recovery values based on the Foundation's liquidation timing. Concerns have also been raised about the broad discretion given to Drift regarding execution timing and methods, which some fear could impact market conditions and recovery values. The proposal reflects a broader trend in DeFi towards structured recovery processes following exploits.
Drift Protocol Faces User Backlash Over Asset Conversion Plan
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