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Term Finance permanently shuts Meta Vault deposits after governance exploit

A security firm estimated the attacker drained about 2,843 ETH and 1.68 million USDC, totaling roughly $8.5 million, while Term said withdrawals remain open.

Reported · Written up by our desk · Market Structure

Term Finance has permanently shut down all Term Meta Vaults and revoked DAO governance roles after a governance exploit, while keeping withdrawals open. Term said the Aug. 23 shutdown is irreversible and prevents further deposits, and it did not quantify how much remains in the vaults. Blockchain security firm PeckShield estimated the attacker drained about 2,843 ETH and 1.68 million USDC that was swapped into about 1.68 million DAI, putting the total at roughly $8.5 million. Term’s update did not provide its own loss estimate, but onchain records were cited as corroborating the transferred amounts.

Term said it is coordinating with external security teams on remediation and recovery, and that its direct borrowing and lending markets, along with its underlying protocol, have not been affected based on its investigation so far. Yearn said Term’s vault contracts use its V3 architecture, but the exploit occurred through Term’s custom governance wrapper, adding that standard Yearn vault setups were not affected.

Term said it would explore paths to address any shortfall if withdrawals do not fully cover deposits, but its Aug. 23 update did not include a reimbursement commitment or a recovery timetable. The update also did not identify the specific revoked roles, affected contract addresses, or the revocation transactions involved.

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