Catenaa, Thursday, May 1, 2025-Ethereum-based lending platform Term Finance said it recovered $1 million of the $1.6 million lost Saturday after a misconfigured oracle triggered faulty liquidations in its Treehouse (tETH) market.
The incident initially resulted in the liquidation of 918 ETH, valued around $1.6 million. Through internal asset capture and negotiations, Term Finance retrieved 556 ETH, significantly reducing the outstanding loss to 362 ETH, or approximately $650,000.
“This was not a hack. No smart contracts were exploited, and user funds were not directly targeted,” the Term team emphasized in a statement on X. Term plans to cover the remaining shortfall using its protocol treasury and will release a detailed post-mortem.
The mishap adds to a string of security challenges across decentralized finance. On the same day, Impermax Finance reported a $150,000 loss from a flash loan attack, according to security firm TenArmor. Impermax said it will provide a detailed report after completing its investigation.
Term’s oracle issue follows recent major incidents in the crypto sector, including Solana platform Loopscale’s $5.8 million exploit and a $20 million loss at crypto exchange Bitget, which plans legal action against suspected perpetrators.
As DeFi platforms face ongoing vulnerabilities, recovery rates vary. Bybit CEO Ben Zhou recently revealed only 3.84% of its $1.4 billion February hack had been frozen, with most funds laundered through mixers and OTC networks.
