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Crypto DeFi

Sui DeFi protocol Full Sail to wind down after Switchboard incident

Full Sail, a DeFi protocol on Sui, is shutting down after an attacker drained about $91,000 from three vaults in a security incident linked to oracle provider Switchboard. The protocol decided to cease operations following the exploit.

Original source

AI take

This wind-down underscores a recurring fragility in DeFi: a relatively small exploit can be existential for a protocol, particularly when it hinges on a third-party oracle. The incident highlights how dependent single-protocol security is on the integrity of its infrastructure partners, and the decision to shut down rather than rebuild signals a risk-off posture among smaller teams. The key question is whether this triggers broader scrutiny of Switchboard's reliability and whether other Sui-based protocols relying on the same oracle will face heightened user withdrawal pressure or reassess their own dependency risk.

Generated by AI for reference only.

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