⌛ Term Finance suffered an estimated $8.5M loss after an attacker reportedly gained governance control over its Meta Vaults and used proposals to drain funds.
The incident affected roughly 68% of the $12.45M held in the vault product, including nearly all of its ETH. Term Labs has since closed Meta Vaults to new deposits, removed DAO roles, and kept withdrawals open while investigating. Its core lending markets were reportedly not affected.
➡️ The bigger lesson here: smart contract security alone isn't enough. Governance is part of the attack surface too.
At BoBe, users keep control of their own keys and funds are not pooled into shared deposit vaults. Before entering a vault, don't just ask what it does. Ask who can control it and what happens if governance is compromised.