Full Sail DeFi Protocol Winds Down After Security Incident

A Sui blockchain DeFi protocol called Full Sail will wind down after a security incident involving oracle provider Switchboard resulted in user losses. The protocol announced on X that it's disabling new deposits and liquidity provider reward claims, with regular pools moving to withdrawal-only mode after final security checks. User compensation is the top priority for Full Sail, which plans to use its remaining protocol-owned liquidity to repay users.

The incident occurred last week when an attacker removed around $91,000 from three of Full Sail's automated vaults. Switchboard reported a potential compromise of its Move-based implementations and halted its network on various platforms. Virtue, another stablecoin lending protocol based on IOTA, also reported losses worth about $455,000.

Full Sail said that it will cover any shortfall to ensure community depositors are repaid first. The protocol expects to publish withdrawal and claim instructions within the coming days.