Term Labs: The security incident report confirms that the affected vault's fixed-rate loan position has been restored

Term Labs released a technical report on the security incident, confirming that all fixed-rate loan positions in the affected vault have been restored as of August 25. The incident was limited to the liquid balance within the Term vault, and Term V1 and V2 contracts were not compromised, with the direct lending market remaining open.

Attack process: From August 17 to 18, the attacker funded an operational wallet through Tornado Cash and submitted a malicious proposal disguised as a governance proposal, setting the governance delay parameter to zero and removing the window for LP blocking changes. On August 23, the attacker executed two batches of attacks, extracting assets from the ETH and USDC strategies and transferring them to the attacker's wallet. Term Labs stated that it has cooperated with law enforcement, the affected vault and strategies have been closed, and the contracts have been upgraded and migrated before expiration.