Project 0 resumes operations after Drift deleveraging, with an average lender asset write-down of 2.61%

Foresight News reports that the decentralized lending protocol Project 0 has announced the resumption of operations. Previously, due to a hacker attack on the Drift protocol, Project 0 suspended operations and initiated a deleveraging process. According to Project 0, the remaining socialized loss amounts to approximately $1.9147 million, which will be apportioned to the credit pool, resulting in an average asset write-down of 2.61% for lenders.

Based on asset risk levels, USDC, SOL, and USDT will have a write-down of 1%, BTC, ETH and other major assets will be written down by 2.61%, while WIF, BONK, and governance tokens will face a 6.62% write-down. Project 0 stated that as Drift assets are gradually unlocked and returned to affected users, the actual loss rate will be lower than the referenced figures above.

Project 0 co-founder MacBrennan previously explained that the protocol uses a unified credit pool to achieve cross-protocol margin functionality, which is the core mechanism of P0. However, some community members expressed dissatisfaction, stating that they were impacted despite not directly participating in Drift lending.