Term Labs Loses $8.5M in Governance Exploit on DeFi Vaults

DeFi lending protocol Term Labs lost approximately $8.5 million on Sunday after a governance exploit targeted its Term vaults, according to blockchain security firm PeckShield.

Blockchain data tracked by PeckShield shows the attacker removed 2,843 Ether (ETH) and 1.68 million USDC from the protocol. The stolen funds were taken from Term vaults, which are part of Term Labs' lending infrastructure.

Term Labs acknowledged the incident in a statement, confirming that an investigation is underway. The team said it would provide a fuller account of what happened once its review is complete.

The exploit highlights ongoing security risks in decentralized finance, where governance vulnerabilities have become a recurring vector for attacks. Authorities and security firms often advise users to monitor protocol changes and audits.