Full Cell, a decentralized finance (DeFi) protocol on the Sui blockchain, plans to shut down after a security incident involving a switchboard provided by Oracle resulted in user losses.
Full sail to take X from Tuesday announcement The protocol is shutting down, immediately disabling new deposit and liquidity provider (LP) reward claims Regular pools will only go into withdrawal mode after a final security check, with compensation users top priority in the protocol, Full Cell said.
The decision follows a security incident last week that affected Full Cell’s automated vaults after a suspected compromise of the switchboard’s Oracle infrastructure.
Before the flowers sail disclosure Saturday’s incident, while investigating, confirmed it lost funds and paused deposits and withdrawals. Switchboard said In an X post on Saturday that it was investigating a possible compromise of its Move-based implementation and shut down its network on Aptos, Sui, IOTA and Movement.
Full Cell later said an attacker removed about $91,000 from its three vaults. Virtu, separately a stablecoin lending protocol based on IOTA (IOTA). Report It lost about $455,000 and said its VUSD stablecoin backing weakened.
Full Cell said it will use its remaining protocol-owned liquidity to compensate users, while the team will make up any shortfalls so that community depositors are paid first. The protocol expects to publish withdrawal and claim instructions in the coming days.
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