Ethereum-based lending protocol Term Finance lost approximately $1.6 million in ETH on Saturday due to misconfigured oracles.
Term has recovered over $1 million through internal capture and negotiations. The team will cover the remaining losses from the protocol treasury and plans to release a detailed post-mortem report.
Impermax Finance, a small DeFi protocol, lost $150,000 due to a flash loan attack on Saturday.
Term Finance, an Ethereum-based fixed-rate lending market, reported recovering $1 million of a $1.6 million loss due to misconfigured oracles resulting in erroneous liquidations in its Treehouse (tETH) market.
"From the original loss: 223.197 ETH (approximately $400,000) was internally captured, and 333 ETH (approximately $600,000) was successfully negotiated for return," the Term team stated on X. "The current total loss is 362.03 ETH (approximately $650,000) — a significant reduction compared to the original 918 ETH impact."
Despite the original liquidation raising concerns among security analysts, Term stated that the cause of the $1.6 million error was a bug in the updated ETH oracle. 'This is not a hack. No smart contracts were exploited, and user funds were not directly targeted,' Term stated. The nature of the negotiations regarding the return of funds is unclear; Term could not immediately respond to The Block's request for comment.
Oracle errors accompany a recent series of DeFi hacks, exploits, and incidents, including a $5.8 million attack on the Solana DeFi platform Loopscale. Cryptocurrency exchange Bitget stated that it lost $20 million last Sunday when an organized group exploited a little-known crypto token market and indicated that it would take legal action against eight accounts it believes are responsible.
The Impermax hack incident added to the weekend's attacks. Another protocol was also attacked on Saturday: Impermax Finance reportedly lost over $150,000 according to security firm TenArmor.
"Less than an hour ago, someone executed a flash loan and drained our V3 pool," Impermax stated on X. "We sincerely apologize for this. We will provide a post-mortem report once a full investigation is completed."
The recovery from crypto hacks varies greatly. Bybit's CEO Ben Zhou recently stated that the platform lost over $1.4 billion due to the largest attack in the crypto industry to date on February 21, with nearly 28% of the stolen funds having 'vanished' and cannot be traced on the blockchain as money launderers transferred funds through mixers, peer-to-peer protocols, and over-the-counter markets. Only 3.84% of the funds were frozen.
