Term Labs recovers fixed-rate positions after $8.5M governance attack

Term Labs has recovered all fixed-rate loan positions held in vaults affected by its August governance exploit, with the final position moved on Aug. 25 as Meta Vaults and affected strategies remain shut down. Summary Term Labs recovered all affected fixed-rate loan positions by Aug. 25, while its Meta Vaults and affected strategies remain shut down. Attackers used malicious governance proposals to remove execution delays before draining liquid ETH and USDC from vault strategies. A counterfeit repo token was priced against each strategy’s exact liquid USDC balance, allowing the attacker to sweep the available funds. Term Labs said its V1 and V2 contracts were not compromised, and its direct borrowing and lending markets remained operational. Term Labs said in its latest incident report that the last fixed-rate position was recovered at 14:52 UTC on Aug. 25, while its investigation found that the attack was confined to liquid balances held inside Term vaults. The protocol said its V1 and V2 contracts were not compromised and its direct borrowing and lending markets continued operating throughout the incident. Term Labs says lending contracts escaped the vault exploit The new technic...