Sui DeFi protocol Full Sail to wind down after Switchboard incident

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.

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 later said an attacker removed about $91,000 from three of its vaults.

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.