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Solana Foundation launches security overhaul days after $270 million Drift exploit

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Solana Foundation launches security overhaul days after $270 million Drift exploit

The Solana Foundation announced a suite of security initiatives on Monday, just five days after decentralized finance (DeFi) platform Drift Protocol suffered a $270 million exploit carried out by a North Korean state-affiliated group following a six-month social engineering campaign.

The centerpiece is Stride, a structured evaluation program led by Asymmetric Research that will assess Solana DeFi protocols against eight security pillars and publish its findings publicly. The foundation also introduced the Solana Incident Response Network (SIRN), a membership-based group of security firms and researchers focused on real-time crisis response.

The initiatives address part of the problem exposed by Drift, but not the mechanics that actually caused the loss. Drift’s smart contracts were not compromised, and its code passed audits. The vulnerability was human: The attackers spent six months building relationships with Drift contributors and compromised their devices through a malicious code repository and a fake TestFlight app.

Under Stride, protocols with more than $10 million in total value locked (TVL) that pass the evaluation will receive ongoing operational security and active threat monitoring funded by Solana Foundation grants, with coverage calibrated to each protocol’s risk profile.

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For protocols with more than $100 million in TVL, the foundation will also fund formal verification, a mathematical method that checks every possible execution path in a smart contract to guarantee correctness.

In addition to Asymmetric Research, founding members include OtterSec, Neodyme, Squads, and ZeroShadow. The network is available to all Solana protocols but prioritized by TVL.

Stride’s formal verification, however, would not have caught the North Korean attack, which used the compromised devices to obtain multisig approvals that were then locked into durable nonce transactions and executed weeks later.

Neither would 24/7 monitoring of onchain activity, because the transactions were valid by design and indistinguishable from legitimate administrative actions until they were used to drain the vaults. The attack exploited the gap between onchain correctness and offchain human trust, a gap no smart contract audit or monitoring tool is built to cover.

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SIRN, however, could have helped with the response. ZachXBT, an onchain security expert, criticized stablecoin issuer Circle Internet (CRCL) for failing to freeze over $230 million of its stolen dollar-pegged USDC during a six-hour window after the attack began.

A dedicated incident response network with established relationships to bridge operators, exchanges and stablecoin issuers might have shortened the response time. Whether it would have been fast enough to prevent the Wormhole bridging and obfuscation through Tornado Cash is an open question.

The foundation was careful to note that the programs “do not transfer the underlying responsibility away from the protocols themselves,” a line that reads differently after Drift’s postmortem revealed that individual contributor devices were the entry point for a nation-state attack.

Solana already hosts several free security tools for builders, including Hypernative for threat detection, Range Security for real-time monitoring, and Neodyme’s Riverguard for attack simulation.

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Crypto World

DATs Need Liquid Staking to Outperform ETH Staking ETFs: Lido Exec

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DATs Need Liquid Staking to Outperform ETH Staking ETFs: Lido Exec

Ether treasury companies may need to use liquid staking and other active yield strategies if they want to offer investors something beyond the staking rewards already available through listed Ether products, Kean Gilbert, head of institutional relations at Lido, told Cointelegraph at ETHCC 2026.

Liquid staking lets Ether (ETH) holders stake their tokens while receiving a transferable token that can still be deployed elsewhere in decentralized finance (DeFi).

Gilbert said strategies such as posting ETH as collateral and borrowing against it could help treasury companies generate higher returns than passive staking products.

US-listed staked ETH products now include the REX-Osprey ETH + Staking ETF, launched in September 2025, Grayscale’s Ethereum Staking ETF and Ethereum Staking Mini ETF, and BlackRock’s iShares Staked Ethereum Trust ETF, introduced on March 12.

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Issuer disclosures show different staking economics across Ether products, making direct yield comparisons difficult. Grayscale’s ETHE page showed 2.26% net staking rewards as of April 6, while Grayscale’s ETH page showed 2.56% as of April 2. Native ETH staking was yielding about 2.72% annually, according to Staking Rewards.

Related: Bitmine paper loss nears $8.8B as Ether slump tests cyclical thesis

Still, Jimmy Xue, co-founder and chief operating officer of quantitative yield platform Axis, said Ether treasury companies do not necessarily need to beat staked Ether products on headline yield because they are different investment vehicles.

“A staked ETH ETF is a passive vehicle. A DAT trading at a meaningful mNAV premium is promising something a passive ETF structurally cannot deliver, which is active, dynamic deployment of spot inventory across opportunities as they arise.”

“The mNAV premium investors pay reflects confidence in management’s ability to put that treasury to work,” Xue said, adding that basis trading is a major yield source for treasury companies.

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Kean Gilbert, head of institutional relations at Lido Finance, interviewed by Cointelegraph at ETHcc. Source: Cointelegraph

Public filings show liquid staking adoption

Public disclosures show several Ether treasury firms using staking or liquid-staking-related strategies, though the level of detail varies by company.

Sharplink Gaming, the second-largest corporate Ether holder, has generated 14,516 ETH (around $30.8 million) in staking rewards as of March. It derived 33% of these rewards from liquid staking and 66% from native staking, according to a March 1 filing with the US Securities and Exchange Commission.

Sharplink reported a $734 million net loss for 2025, largely driven by the sharp crypto market downturn in the second half of the year.

BTCS Inc. SEC filing. Source: SEC.gov

BTCS Inc., the 10th-largest Ether treasury company by returns, has also staked a part of its Ether holdings through the liquid staking protocol Rocket Pool. Out of its total 29,122 ETH holdings, the company has liquid staked 4,160 ETH ($8.8 million) through Rocket Pool nodes, according to a July 2025 SEC filing.

Cointelegraph has approached BitMine, SharpLink and The Ether Machine for comment on the role of liquid staking in their strategies.

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Magazine: Sharplink exec shocked by level of BTC and ETH ETF hodling — Joseph Chalom