Full Sail to Shut Down After Switchboard Oracle Breach

Full Sail is a decentralized finance protocol built on the Sui blockchain, offering automated vaults and other onchain products. Its shutdown underscores the risks created when DeFi applications rely on third-party oracles to supply external price data to smart contracts. A compromise at that infrastructure layer can feed faulty information into multiple protocols and expose user funds even if their own contracts are not directly breached.

Full Sail disclosed the incident on Aug. 29, 2026, initially pausing deposits and withdrawals while it investigated. It later said an attacker had removed about $91,000 from three vaults. On Sept. 1, the protocol announced it would wind down, immediately disabling new deposits and liquidity-provider reward claims before moving regular pools to withdrawal-only mode. Full Sail said protocol-owned liquidity would fund repayments and the team would cover any shortfall, with community depositors given priority.