Full Sail, a decentralized finance protocol on the Sui blockchain, will shut down following a security incident that drained approximately $91,000 from three of its automated vaults. The exploit is linked to a suspected compromise of oracle provider Switchboard's infrastructure.
Full Sail announced its winding down on Tuesday, immediately halting new deposits and liquidity provider reward claims. The protocol plans to transition its regular pools to withdrawal-only mode after completing final security checks.
The protocol said it will deploy its remaining protocol-owned liquidity to repay users, with the team committing to cover any shortfall to ensure community depositors are made whole first. Withdrawal and claim instructions are expected within the coming days.
Full Sail confirmed the security breach on Saturday, at which point it paused all deposits and withdrawals to investigate the fund loss. Switchboard posted the same day, confirming an investigation into a potential compromise of its Move-based implementations.
Switchboard halted its network across multiple blockchains, including Aptos, Sui, IOTA and Movement, to contain potential further damage from the suspected oracle infrastructure compromise.
Virtue, a stablecoin lending protocol on IOTA, reported approximately $455,000 in losses tied to the same incident. The loss impaired the backing of its VUSD stablecoin and resulted in the liquidation of 45 users on the Virtue Money platform.
