Sui's Full Sail DeFi Protocol Shuts Down Following Oracle Compromise

Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, is shutting down after a security incident involving oracle provider Switchboard led to user losses.

The protocol announced it would be winding down operations on X, immediately disabling new deposits and liquidity provider (LP) reward claims. Regular pools will transition to withdrawal-only mode after final security checks are complete, with Full Sail prioritizing compensating affected users.

The decision follows a security incident last week that impacted Full Sail's automated vaults, suspected to be linked to the compromise of Switchboard's oracle infrastructure.

Full Sail initially disclosed the incident on Saturday, confirming a loss of funds and pausing deposits and withdrawals while it investigated. Switchboard later stated it was investigating a potential breach of its Move-based implementations, halting operations on Aptos, Sui, IOTA, and Movement.

The attacker is believed to have removed approximately $91,000 from three Full Sail vaults, with Virtue, a stablecoin lending protocol based on IOTA (IOTA), separately reporting about $455,000 in losses due to the incident.