Term Finance
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 22 → 39. Problems weighed by who is responsible: incidents the subject suffered −19.2, concerns that are not fraud −10, problems around the subject, caused by others −1.8; legitimacy credit long-running +6; a recent unresolved incident −11. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -10 |
| Incidents it suffered (e.g. hacks) | -19.2 |
| Problems around it, caused by others | -1.8 |
| Long-running | +6 |
| Recent unresolved incident | -11 |
| Sum | 29 |
Score: 39/100 (kept between 0 and 100)
How scoring works →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.
Connected Entities
6 entities · 60 linked investigations- Term Labs→mentioned with→Amazon(60%)
- Term Labs→mentioned with→Ethereum(80%)
- Yearn Finance→mentioned with→Ethereum(70%)
- Term Finance→mentioned with→Beanstalk(60%)
- Term Finance→mentioned with→Amazon(60%)
- Term Finance→mentioned with→Yearn Finance(85%)
- Term Finance→mentioned with→Ethereum(80%)
- Beanstalk→mentioned with→Ethereum(80%)
- Term Labs→mentioned with→Term Finance(80%)
- Term Finance→mentioned with→Term Labs(80%)
6 submissions awaiting moderator review.
Timeline(5 events)
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.
PRNewswire23 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 / CryptoTimes23 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 / CoinTelegraph23 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 / CoinTelegraphDecision Log
- slot 455360291 · hash 57AXk6VzydD6KiXzKh7Gcq8oV9pPsM9QeWe6hdW2c7y9
- slot 443527100 · hash 8ur5vYdAaixW1qfFs5jA3vxyCmKcyESTqwMgMREJZcKa
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 14 of 15 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 8/30/2026, 5:06:21 PM
last updated: 10/10/2026, 6:41:18 PM
5 viewsavoid.net — verified advice for a post-truth world