Term Finance this DeFi lending protocol was hit by a governance attack, and CertiK estimates the losses at around $8.5 million.
The Term Labs development team has confirmed it and is still investigating.
The attacker address currently holds 2,843 ETH and about $1.6 million worth of DAI.
The issue lies in the governance process.
Code audits mainly focus on contract vulnerabilities, but malicious proposals and vote manipulation in governance rules are difficult to detect in advance.
DeFi gives a lot of power to governance tokens—so security has another potential vulnerability.
The Term Labs development team has confirmed it and is still investigating.
The attacker address currently holds 2,843 ETH and about $1.6 million worth of DAI.
The issue lies in the governance process.
Code audits mainly focus on contract vulnerabilities, but malicious proposals and vote manipulation in governance rules are difficult to detect in advance.
DeFi gives a lot of power to governance tokens—so security has another potential vulnerability.