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.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.How the exploit moved through governanceTerm's 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.Timeline showing how the Term Meta Vault drain unfolded, from governance changes to WETH and USDC transfers and the vault’s 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 through a newly...