Breaking
RUOperation Statewide Shield finds 163 missing children in FloridaRUNepal landslide and flooding death toll rises to 1,204GLOBALPrivate U.S. Job Growth Slows in August, ADP ReportsINTLRussia has been secretly aiding Iran's supersonic missile development for years, report saysPLFour people died in an accident on the A1 motorway near CzęstochowaSESabotage against German electricity infrastructure is being investigated as a possible terrorist crimeINTLBank of America VP Erin Piacenti fatally stabbed in Times Square on first week back from maternity leaveITAlex Eala triumphs in the first round of the US Open and lights up the 'Louis Armstrong Stadium'INTLParents arrested after body of missing nonverbal 5-year-old found near South Carolina beachESAn Italian family commits suicide after giving up hope for experimental treatment for their disabled daughterRUOperation Statewide Shield finds 163 missing children in FloridaRUNepal landslide and flooding death toll rises to 1,204GLOBALPrivate U.S. Job Growth Slows in August, ADP ReportsINTLRussia has been secretly aiding Iran's supersonic missile development for years, report saysPLFour people died in an accident on the A1 motorway near CzęstochowaSESabotage against German electricity infrastructure is being investigated as a possible terrorist crimeINTLBank of America VP Erin Piacenti fatally stabbed in Times Square on first week back from maternity leaveITAlex Eala triumphs in the first round of the US Open and lights up the 'Louis Armstrong Stadium'INTLParents arrested after body of missing nonverbal 5-year-old found near South Carolina beachESAn Italian family commits suicide after giving up hope for experimental treatment for their disabled daughter
Newsgather
All StoriesWorldSportsFinanceTechScienceHealthCultureClimatePoliticsSpace
BackFull Sail DeFi Protocol to Shut Down After Oracle Security Incident
Full Sail DeFi Protocol to Shut Down After Oracle Security Incident
Developing
Cointelegraph1 hour agoTech1 min read

Full Sail DeFi Protocol to Shut Down After Oracle Security Incident

full sailsui blockchainswitchboard

Quick Look

  • Full Sail, a DeFi protocol on the Sui blockchain, announced it will shut down following a security incident involving oracle provider Switchboard that led to user losses.
  • The protocol has disabled new deposits and LP reward claims, moving regular pools to withdrawal-only mode after security checks.
  • Full Sail will use its remaining liquidity to compensate users, with the team covering any shortfall to ensure community depositors are repaid first.

AI-generated summary

Why It Matters

Full Sail is a decentralized finance protocol operating on the Sui blockchain. The protocol experienced a security incident last week affecting its automated vaults, which it linked to a suspected compromise of oracle provider Switchboard's infrastructure. Full Sail initially disclosed the incident on Saturday, confirming fund losses and pausing deposits and withdrawals.

Font size

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.

Full Sail took to X on Tuesday to announce that the protocol is winding down, immediately disabling new deposits and liquidity provider (LP) reward claims. 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 first disclosed the incident on Saturday, saying it had confirmed a loss of funds and paused deposits and withdrawals while it investigated. Switchboard said in an X post on Saturday that it was investigating a potential compromise of its Move-based implementations and had halted its network on Aptos, Sui, IOTA and Movement.

Full Sail later said an attacker removed about $91,000 from three of its vaults. Virtue, a stablecoin lending protocol based on IOTA (IOTA), separately reported about $455,000 in losses and said the backing of its VUSD stablecoin had been impaired.

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.

What to Watch

AI outlook — possibilities, not facts

  • Full Sail will publish withdrawal and claim instructions for users within the coming days

    Very likely · Within days

  • Switchboard will complete its investigation into the potential compromise of its Move-based implementations

    Likely · Within weeks

Open Questions

  • What specific vulnerability in Switchboard's oracle infrastructure was exploited?
  • Will Switchboard provide compensation or take responsibility for the losses incurred by Full Sail and Virtue?
  • How will the shutdown of Full Sail affect the broader Sui DeFi ecosystem?

Related Topics

full sail
OrganizationsFull SailSwitchboardVirtue
Topicssui blockchainswitchboardoracle compromisedefi protocoluser lossesprotocol shutdown
This article was originally published by Cointelegraph.

Related Stories

Injective blockchain halted block production for four hours during emergency response to exploit
Developing·2 hours ago

Injective blockchain halted block production for four hours during emergency response to exploit

Injective's layer-1 blockchain stopped producing blocks for nearly four hours on Aug. 31 during an emergency response to an exploit traced to core modules. Researchers disputed the foundation's claim that the chain was 'upgraded, not halted,' noting the attack used native exchange and insurance modules. While staked funds and consensus were not compromised, the incident required a core-code patch and led to temporary validator jailing and transfer restrictions on exchanges like Coinbase and Coins.ph. INJ traded around $4.80, down 3% over 24 hours, with researchers estimating $4.9 million bridged to Ethereum during the exploit.

CryptoSlate
2 min read
More on this topicfull sail