Full Sail Shuts Down Amid Oracle-Linked Security Incident on Sui Blockchain

The decentralized finance (DeFi) protocol Full Sail has announced it will shut down permanently following a security incident linked to an oracle provider. The team stated that they have disabled new deposits and stopped liquidity provider (LP) reward claims as part of its wind-down process.

The decision was made after losses were incurred due to issues in the protocol's automated vaults, which the team attributed to a suspected compromise of Switchboard's oracle infrastructure. Switchboard had previously halted its network on several chains, including Aptos, Sui, IOTA, and Movement, while investigating the potential issue.

Full Sail will use remaining liquidity to compensate affected users, with the priority being to cover any shortfall and repay community depositors first. The team has promised to publish detailed withdrawal and claim instructions within the coming days, which will outline how compensation will be processed and how remaining assets will be allocated.