A seven-day delay, plus a veto right for liquidity providers—these were the two safeguards Term Finance built into its vault proposals. In theory, any proposal to alter vault parameters had to be publicly posted for a week, giving liquidity providers time to review it and, if necessary, vote it down. This time, both safeguards were in place, and the attack still happened.
According to The Block, DeFi lending protocol Term Finance suffered losses estimated at $8.5 million due to a governance exploit. The report noted that the seven-day delay and veto power built into the vault proposal design failed to prevent the attack from succeeding.
That's where the publicly available information ends for now: the attack vector, where the funds went, and whether Term Finance has issued an official statement or remediation plan are not addressed in the source material.
