Drift Protocol plans to convert all exploit-linked assets into USDT, sparking user backlash over forced liquidation.

Drift Protocol proposed converting all remaining assets linked to its April exploit into USDT to form a stablecoin recovery reserve, aiming to reduce market volatility and simplify accounting. The plan, however, faced criticism from users who oppose forced liquidation and loss of potential gains from volatile assets like SOL, ETH, and BTC. Concerns were also raised about the Foundation's broad discretion over timing and methods of asset conversion. This move reflects a broader trend in DeFi where exploit recoveries involve structured financial management rather than automated processes.