Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, plans to shut down after a security incident involving oracle provider Switchboard resulted in user losses.
Full Sail took to X on Tuesday to announce that the protocol is winding down, immediately disabling new deposits and liquidity provider (LP) reward claims. Regular pools will move to withdrawal-only mode after final security checks, with compensating users the protocol’s top priority, Full Sail said.
The decision follows a security incident last week that affected Full Sail’s automated vaults following a suspected compromise of Switchboard’s oracle infrastructure.
Full Sail first disclosed the incident on Saturday, saying it had confirmed a loss of funds and paused deposits and withdrawals while it investigated. Switchboard said in an X post on Saturday that it was investigating a potential compromise of its Move-based implementations and had halted its network on Aptos, Sui, IOTA and Movement.
Full Sail later said 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 said it 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.
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