Full Sail DeFi protocol shuts down after Switchboard oracle incident

Full Sail, a decentralized finance (DeFi) protocol on the Sui blockchain, has announced it is winding down operations following a security incident involving the oracle provider Switchboard. The protocol reported that approximately $91,000 was removed from three of its automated vaults due to a suspected compromise of Switchboard’s Move-based oracle infrastructure.

Switchboard confirmed it halted deployments on the Aptos, Sui, IOTA, and Movement networks to investigate the potential compromise of its Move-language implementations. While the provider noted its Solana implementation remained unaffected, it has not yet released a root cause or a timeline for restoring the affected deployments.

In response to the incident, Full Sail has disabled new deposits and liquidity provider reward claims. The protocol team stated that its priority is compensating users, pledging to use remaining protocol-owned liquidity and team funds to cover any shortfalls to ensure community depositors are repaid first. The protocol expects to provide specific withdrawal and claim instructions in the coming days.