Sui Ecosystem Hit by Oracle Security Incident as Full Sail Winds Down
The Sui blockchain's decentralized finance (DeFi) protocol Full Sail has announced it will gradually cease operations due to an oracle security incident. The decision marks a significant setback for the Sui ecosystem, which has been working to establish itself as a hub for innovative DeFi applications.
The incident affected several protocols relying on the same oracle infrastructure, including Virtue Money, which reported losses of approximately $455,000. 45 users were liquidated as a result of the exploit, triggering a cascade of forced sell-offs and further destabilizing the affected pools.
Full Sail's team stated that the decision to wind down was not taken lightly but was necessary to protect remaining users and ensure an orderly exit. The protocol plans to first distribute its remaining liquidity to users, and any shortfall will be covered by the team's own funds.