Term Finance kills Meta Vaults after governance process clears path for $8.5 million drain
On-chain fixed-rate lending protocol Term Finance said it permanently shut down its Meta Vaults after a governance exploit, ending new deposits while leaving withdrawals open. Related Asset Ethereum #2 ETH · $2,497.37 24-hour change: up 1.69% 24H Up 1.69% 7D Up 31.46% 30D Up 32.66% Term Labs said it also revoked the vaults DAO governance roles. Blockchain security firm PeckShield separately estimated that the attacker removed about 2,843 ETH worth $6.87 million and 1.68 million USDC, which was swapped for roughly 1.68 million DAI. Term has not confirmed the roughly $8.5 million total or published its own vault-by-vault accounting. Related Company Peckshield Blockchain security company How the exploit moved through governance Terms governance documentation describes an opt-out system. Vault liquidity-provider token holders can veto queued parameter changes during a seven-day delay, and the change can become executable without a veto. Related Asset USDC USDC · Stablecoin Timeline showing how the Term Meta Vault drain unfolded, from governance changes to WETH and USDC transfers and the vaults shutdown. A DeFiPrime reconstruction of the on-chain activity said an ETH Meta Vault proposal remained open for six days without a veto. Its first actions on execution set the delay cooldown to zero, removing the second waiting period before the transaction routed 2,841.7435 WETH