The Sui ecosystem DeFi protocol Full Sail stated that it has decided to wind down operations due to the impact of the Switchboard oracle security incident. Affected protocols include Virtue Money, which reported losses of approximately $455,000 and the liquidation of 45 users. Switchboard has issued a statement regarding the incident but, as of September 1, has not provided the technical details requested by Full Sail nor committed to compensation. Mysten Labs declined Full Sail’s request for financial support. Full Sail stated that all remaining liquidity held by the protocol will be prioritized for users, and the team will cover any shortfall to ensure community depositors receive priority compensation.
Sui DeFi Protocol Full Sail to Cease Operations Due to Switchboard Incident
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Summary
The Sui DeFi protocol Full Sail announced it will gradually cease operations due to the impact of the Switchboard oracle security incident. The affected protocol, Virtue Money, reported a loss of approximately $455,000, with 45 users liquidated. Switchboard has issued a statement but, as of September 1, has not provided technical details or committed to compensation. Mysten Labs rejected Full Sail’s request for financial support. Full Sail stated that all remaining liquidity will be prioritized for user distribution, with the team covering any shortfall to ensure depositors are prioritized. Traders are advised to monitor altcoins closely amid ongoing DeFi volatility.
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