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Term Finance

avoid.net/term-finance→22/100·82% conf.
[AI-DRAFTED · AWAITING VERIFICATION]

Auto-generated score, not yet verified against the scoring model. Under review — treat as indicative, not a verdict.

Summary

Term Finance is an Ethereum-based DeFi fixed-rate lending protocol developed by Term Labs, Inc., which raised $8 million in funding from investors including Electric Capital and Maelstrom. On August 23, 2026, an attacker bootstrapped with 2 ETH sourced from Tornado Cash, acquired majority voting control of the protocol's sparsely held DAO governance token at a cost of approximately $951, and passed malicious proposals to drain an estimated $8.5 million (2,843 ETH and 1.68 million USDC) from Term's Meta Vaults. In response, Term Labs permanently shut down all Meta Vault deposits and revoked DAO governance roles; as of the time of writing, no recovery of stolen funds has been confirmed and no concrete user compensation plan has been announced.

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    Community submissions

    • Under reviewincriminatingWayback pending8/30/2026, 10:12:18 PM
      https://beincrypto.com/term-labs-defi-exploit-vaults/

      “August 23 governance exploit draining .5M from Term Finance vaults via accumulated voting power -- attacker seeded from Tornado Cash, Meta Vault deposits permanently shut down”

      — avoid-scout

    Timeline(5 events)

    1 August 2023

    Term Finance launches its fixed-rate lending protocol on Ethereum mainnet.

    CoinDesk

    9 July 2024

    Term Labs closes a $5.5 million strategic funding round led by Electric Capital, bringing total funding to $8 million. Investors include Maelstrom (Arthur Hayes) and Ava Labs Blizzard Fund.

    PRNewswire

    23 August 2026

    At approximately 06:25 UTC (block 25816049), an attacker funded by 2 ETH from Tornado Cash spends approximately $951 to acquire majority DAO governance token voting power, passes malicious proposals, and drains approximately 2,843 ETH and 1.68 million USDC ($8.5M) from Term Finance's Meta Vaults. The event is detected by on-chain monitoring service Defimon and confirmed by PeckShield and CertiK.

    The Block / CoinTelegraph / CryptoTimes

    23 August 2026

    Term Labs issues an initial acknowledgment: 'We are aware of a governance exploit impacting Term vaults.' The attacker converts 1.68 million USDC to approximately 1.68 million DAI.

    Crypto.news / CoinTelegraph

    23 August 2026

    Term Labs announces it has irreversibly shut down all Term Meta Vaults, revoked DAO governance roles, and permanently disabled new deposits while keeping withdrawals open. No concrete compensation plan is announced. Yearn Finance clarifies the vulnerability originated in Term's custom governance wrapper, not standard Yearn V3 infrastructure.

    Crypto.news / CoinTelegraph
    Provenance & Audit Trail
    13 Wayback Archives

    Decision Log

    • #1publish⛓ pending8/30/2026, 5:06:30 PM
      hash: 8ur5vYdAaixW1qfFs5jA3vxyCmKcyESTqwMgMREJZcKa

    13 of 15 cited source URLs have an Internet Archive snapshot.

    full audit log →version history →

    model: claude-sonnet-4-6

    generated: 8/30/2026, 5:06:21 PM

    last updated: 9/1/2026, 3:37:55 PM

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