Reported by The Block: Ethereum-based lending protocol Term Finance lost about $1.6 million worth of ETH on Saturday due to a misconfigured oracle.
Term said through internal capture and negotiations, over $1 million worth of funds was recovered.
The team will cover the remaining hole from the protocol treasury and plans to release a detailed post-mortem.
Impermax Finance, a small DeFi protocol, lost $150,000 to a flash loan attack on Saturday.
Term Finance, an Ethereum-based fixed-rate lending market, said it recovered $1 million of the $1.6 million in funds lost when a misconfigured oracle led to faulty liquidations in its Treehouse (tETH) market.
"Of the original loss: 223.197 ETH [~$400,000] was captured internally, 333 ETH [~$600,000] was successfully negotiated for return," the Term team said on X. "The total outstanding loss is now 362.03 ETH (~$650K) — significantly reduced from the original 918 ETH impact."
Though the original liquidations sparked concerns from security analysts, Term said a bug with an updated ETH oracle was to blame for the $1.6 error. "This was not a hack. No smart contracts were exploited, and user funds were not directly targeted," Term said. It is unclear what form the negotiations for the return of funds took; Term could not immediately be reached for comment from The Block.
The oracle error joins an array of recent DeFi hacks, bugs, and exploits, including a $5.8 million exploit of Solana DeFi platform Loopscale. Crypto exchange Bitget, which said it lost $20 million after an organized group exploited a market for a little-known crypto token last Sunday, said it would legally pursue the eight accounts it believes to be responsible.
Impermax hack adds to weekend attacksAnother protocol was also attacked on Saturday: Impermax Finance, leading to a loss of over $150,000, according to security firm TenArmor.
"Less than one hour ago, someone executed a flash loan and drained our V3 pools," Impermax said on X. "We are very sorry for that. We will provide a post-mortem when the full verification is done."
Recoveries from crypto hacks vary widely. Ben Zhou, the CEO of Bybit, which lost over $1.4 billion on Feb. 21 as a result of the crypto industry's largest attack so far, recently said nearly 28% of the hacked funds had "gone dark," making them untraceable on the blockchain, after launderers moved funds between mixers, peer-to-peer protocols, and over-the-counter markets. Only 3.84% of the funds have been frozen.
