Cross-chain oracle compromise triggers liquidations and frozen vaults across multiple DeFi networks
Switchboard, an oracle supplier that provides value information to DeFi functions, said contributors halted its deployments on Aptos, Sui, IOTA and Movement after reviews of a possible Switchboard Move oracle compromise in its Move-language implementations.
At least three functions reported losses, freezes or precautionary entry restrictions as Switchboard suggested customers emigrate briefly to options. The supplier mentioned it had not acquired related reviews about its Solana implementation, nevertheless it has not printed a root trigger or a timetable for restoring the 4 Move deployments.
Switchboard Move oracle compromise hits DeFi apps
Sui-based change Full Sail confirmed that its vaults misplaced funds and mentioned deposits and withdrawals would stay paused till oracle integrity was restored and verified. Its disclosure didn’t establish the affected vaults or belongings, present transaction data, or quantify the loss.
Full Sail’s vault documentation says customers delegate liquidity administration to an automatic system that rebalances concentrated positions utilizing real-time market information. Separate oracle-protection documentation describes checks that evaluate Switchboard costs with on-chain pool costs, check updates towards 50 to 70 latest observations, and can block costs or pause emissions. Full Sail has not defined whether or not these controls fired, utilized to the affected vaults, or had been associated to the reported losses.
On Aug. 31, DefiLlama positioned Full Sail at roughly $229,000 in whole worth locked. Its rolling DEX volume was about $50 over 24 hours, $2.99 million over seven days and $9.10 million over 30 days. Those home windows embrace pre-incident exercise and don’t set up how a lot worth modified due to the occasion.
Virtue particulars IOTA value manipulation
The most detailed account got here from IOTA credit score protocol Virtue. It mentioned an attacker gained management of the signing keys utilized by all 14 oracles on Switchboard’s IOTA mainnet queue and pushed IOTA’s reported value to $10 million. The attacker then deposited 1 IOTA and minted about 4.94 million VUSD, in accordance with Virtue.
Virtue mentioned the feed was later pushed close to zero, triggering 47 liquidations that affected 45 customers. It froze borrowing, compensation, deposits, withdrawals, liquidations and flash loans, and warned that VUSD was materially undercollateralized whereas remediation was pending. Those figures relate to Virtue, not Full Sail’s undisclosed loss.
Volo pauses entry as networks keep on-line
On Sui, Volo said it paused vault deposits and withdrawals as a precaution due to a Switchboard dependency. Volo mentioned its vaults had been unaffected and consumer funds had been secure.
Sui’s status page confirmed all techniques operational on Aug. 31, whereas IOTA’s page confirmed mainnet companies working with listed incidents resolved. Equivalent standing proof was not established for Aptos or Movement.
The verified affect is uneven however materials: a confirmed but unquantified Full Sail loss, an in depth manipulation and protocol freeze at Virtue, and a preventive entry pause at Volo. Switchboard has not printed an entire listing of affected integrations, leaving the total utility footprint of the suspected Switchboard Move oracle compromise unresolved.
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