Full Sail Shuts Down Amid Oracle Provider Security Incident

Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, has announced that it will shut down following a security incident involving oracle provider Switchboard.

The incident resulted in user losses, with Full Sail confirming a loss of funds and pausing deposits and withdrawals while it investigated. The protocol's automated vaults were affected after a suspected compromise of Switchboard's oracle infrastructure.

Full Sail first disclosed the incident on Saturday, saying that an attacker removed about $91,000 from three of its vaults. Virtue, a stablecoin lending protocol based on IOTA (IOTA), separately reported about $455,000 in losses and said the backing of its VUSD stablecoin had been impaired.

Full Sail will use its remaining protocol-owned liquidity to compensate users, while the team will cover any shortfall so community depositors are repaid first. The protocol expects to publish withdrawal and claim instructions within the coming days.