Project 0 Restarts After Drift Exploit, Lenders to Take 2.61% Average Writedown

Decentralized lending protocol Project 0 said it has resumed operations after pausing services and launching a deleveraging process in the wake of a hack affecting the Drift protocol. Project 0 estimates the remaining socialized loss at about $1.9147 million, which will be allocated across its unified credit pool. Based on current calculations, lenders face an average writedown of 2.61%. By asset, writedowns are set at 1% for USDC, SOL and USDT; 2.61% for BTC and ETH; and 6.62% for WIF, BONK and governance tokens. The protocol noted that these figures represent baseline estimates. As Drift-related assets are unlocked and returned to users, the realized losses are expected to come in below the stated levels. Some community members criticized the unified credit pool design, arguing it spreads losses across lenders regardless of asset-specific exposure.