Full Sail, a decentralized finance (DeFi) protocol built on the Sui blockchain, announced Tuesday that it plans to shut down following a security incident linked to oracle provider Switchboard. The breach resulted in the removal of approximately $91,000 from three of the protocol's vaults, according to Full Sail's statement.
The protocol immediately disabled new deposits and claims for liquidity provider rewards. Regular pools will transition to withdrawal-only mode after security checks are completed, with user compensation listed as Full Sail's priority, the protocol said.
The incident stemmed from a suspected compromise of Switchboard's oracle infrastructure last week. Switchboard said Saturday that it was investigating a potential breach of its Move-based implementations and had halted its network across Aptos, Sui, IOTA and Movement blockchains.
Full Sail said it will use remaining protocol-owned liquidity to compensate users, with the team covering any shortfall to ensure community depositors are repaid first. Separately, Virtue, a stablecoin lending protocol on IOTA, reported approximately $455,000 in losses from the same incident and said the backing of its VUSD stablecoin had been impaired.
Full Sail said it expects to publish withdrawal and claim instructions within the coming days.