CertiK · Oracle · Ethereum · Strategy · The Block
DeFi lending protocol Term Finance sheds an estimated $8.5 million to governance exploit
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
★ Tier-1 Source
Ethereum-based fixed-rate lending market Term Finance's vaults were drained of about $8.5 million on Sunday after an unknown attacker exploited the protocol's governance system to move ether and stablecoins, according to blockchain security firms PeckShield and CertiK.
Key facts
- PeckShield estimated that the attacker withdrew about 2,843 ETH worth roughly $6.9 million and 1.68 million USDC
- In March, an attacker spent about $1,800 on tokens to push a proposal that threatened $1.08 million at Moonwell
- Before the hack, the total value locked (TVL) in Term's vaults was about $12.45 million, per DefiLlama data, including about $8.8 million on Ethereum
- PeckShield traced the funds to a single address which had initially received 2 ETH from mixing protocol Tornado Cash
Summary
"We are aware of a governance exploit impacting Term vaults," Term Labs said on X. PeckShield estimated that the attacker withdrew about 2,843 ETH worth roughly $6.9 million and 1.68 million USDC. Term's Strategy Vaults are ERC-4626 tokenized vaults built on Yearn V3 infrastructure. "While their contracts are built on Yearn's V3 architecture, the exploit occurred via a custom governance wrapper around the vaults and this attack vector is not applicable to standard Yearn vault setups," Yearn wrote on X following the exploit.