Term Finance Permanently Shuts Down Exploited Meta Vaults

Term Finance permanently shut down its Meta Vaults after an exploit that PeckShield estimated at $8.5 million. The attack occurred on or before August 23, when Term's update said withdrawals remain open but did not quantify remaining vault assets.

The company said all Term Meta Vaults have been shut down and DAO governance roles revoked following the governance exploit. Withdrawals still remain available, but new deposits are permanently blocked.

Blockchain security firm PeckShield found that an attacker drained about 2,843 ETH worth $6.87 million at the time, as well as 1.68 million USDC swapped into roughly 1.68 million DAI. This totals to around $8.5 million in losses, according to PeckShield.

Term's governance documentation describes a proposal path from a Proposer Safe through a seven-day delay and Governor Safe to a vault. However, the company said it revoked DAO governance roles following an incident involving Term Vault governance without specifying affected contract addresses or revocation transactions.