Sui DeFi Protocol Full Sail Winds Down After Oracle Security Incident
Full Sail, a decentralized finance (DeFi) protocol built on the Sui blockchain, has decided to gradually cease operations following an oracle security incident. The decision was made to protect remaining users and ensure an orderly exit after several protocols relying on the same oracle infrastructure were affected.
The incident resulted in losses of approximately $455,000 for Virtue Money, with 45 users being liquidated as a result. This triggered a cascade of forced sell-offs and further destabilized the affected pools.
Full Sail's team stated that the decision to wind down was not taken lightly but was necessary to minimize user losses. The protocol plans to first distribute its remaining liquidity to users, with any shortfall covered by the team's own funds.
Mysten Labs, the development firm behind Sui, rejected Full Sail's request for financial assistance. This highlights the trend of infrastructure providers distancing themselves from protocol-level risks, even as they continue to support the ecosystem's growth.