Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, plans to close down after a safety incident involving oracle supplier Switchboard resulted in person losses.
Full Sail took to X on Tuesday to announce that the protocol is winding down, instantly disabling new deposits and liquidity supplier (LP) reward claims. Common swimming pools will transfer to withdrawal-only mode after last safety checks, with compensating customers the protocol’s prime precedence, Full Sail stated.
The choice follows a safety incident final 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 lack of funds and paused deposits and withdrawals whereas it investigated. Switchboard said in an X publish on Saturday that it was investigating a possible compromise of its Transfer-based implementations and had halted its community on Aptos, Sui, IOTA and Motion.
Full Sail later stated an attacker eliminated about $91,000 from three of its vaults. Advantage, a stablecoin lending protocol primarily based on IOTA (IOTA), individually reported about $455,000 in losses and stated the backing of its VUSD stablecoin had been impaired.
Full Sail stated it would use its remaining protocol-owned liquidity to compensate customers, whereas the workforce will cowl any shortfall so group depositors are repaid first. The protocol expects to publish withdrawal and declare directions throughout the coming days.
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