Full Sail, a decentralized finance protocol built on Sui, said it is winding down after a security incident tied to oracle provider Switchboard led to user losses. The team announced on Tuesday that new deposits and liquidity provider reward claims have been disabled immediately, while regular pools will move to withdrawal-only mode after final security checks. Full Sail had first disclosed the incident on Saturday, saying it confirmed a loss of funds and paused deposits and withdrawals during its investigation. Switchboard said the same day that it was looking into a potential compromise affecting its Move-based implementations and halted its network on Aptos, Sui, IOTA and Movement. Full Sail later said an attacker removed about $91,000 from three vaults. Separately, IOTA-based stablecoin lending protocol Virtue reported roughly $455,000 in losses and said the collateral backing of its VUSD stablecoin had been impaired. Full Sail said it will use remaining protocol-owned liquidity to compensate users, and that the team will cover any shortfall so community depositors are repaid first. Withdrawal and claims instructions are expected in the coming days.
Full Sail, a decentralized finance protocol on the Sui blockchain, is winding down after a security incident linked to oracle provider Switchboard caused user losses.
In a Tuesday post on X, Full Sail said it had immediately disabled new deposits and liquidity provider, or LP, reward claims. The protocol added that regular pools will switch to withdrawal-only mode after final security checks, with compensating users now its top priority.
Shutdown follows last week's security incident
The decision came after a security incident last week affected Full Sail’s automated vaults following what the protocol described as 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. On the same day, Switchboard said in an X post that it was investigating a potential compromise involving its Move-based implementations and had halted its network on Aptos, Sui, IOTA and Movement.
About $91,000 removed from three vaults
Full Sail later said an attacker removed about $91,000 from three of its vaults.
Separately, Virtue, a stablecoin lending protocol on IOTA, reported about $455,000 in losses and said the backing of its VUSD stablecoin had been impaired.
User compensation plan to be released in coming days
Full Sail said it will use its remaining protocol-owned liquidity to compensate users. The team said it will cover any shortfall so community depositors are repaid first.
The protocol expects to publish instructions for withdrawals and claims in the coming days.
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