Reflec offers 0.20 USDC per token for Drift hack victims

Reflec, the a16z-backed stablecoin protocol, opened a 180-day window for USDC+ holders affected by the April Drift exploit to sell positions at 0.20 USDC plus 80 Reflect Credit per unit. The voluntary plan targets users who held USDC+ when the Drift protocol — now rebranded as Velocity — suffered a security breach that resulted in approximately $286 million in losses.

"The recovery plan, funded upfront by Palindrome Engineering, is entirely separate from the Drift recovery process," the protocol said in a statement. Palindrome Engineering is the entity managing the buyback, with all settlements executed on-chain.

Participation requires holders to waive any claims against Drift in exchange for immediate settlement liquidity. Non-participants retain the option to support Drift's DFX recovery channel. The 180-day window began July 2, giving affected users through late December to decide.

The $286 million Drift exploit ranks among the largest DeFi hacks on Solana, highlighting the persistent security risks facing the ecosystem. Reflec's decision to fund a separate recovery path — rather than relying solely on Drift's process — shows that downstream protocols are taking independent action to protect their stablecoin holders. The outcome may influence how other protocols structure recovery plans after major exploits, particularly for stablecoin positions that serve as core collateral across DeFi lending markets.

This article is for informational purposes only and does not constitute investment advice.