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multi-chain oracle project Switchboard has announced it is ceasing operations. Switchboard Technology Labs, its core development contributor, will gradually wind down remaining operations, all Switchboard implementations will stop being maintained effective immediately, and remaining support will be terminated on September 25. Protocols using its oracle are required to migrate immediately to alternatives such as Pyth and RedStone.Switchboard stated that AI has reduced the cost of building in-house oracles, the crypto bear market has led to a decline in the number of new public chains and project budgets, and the model of direct collaboration between data providers such as Hyperliquid and S&P shows that protocols may increasingly obtain data directly, thereby weakening the value of third-party oracle networks.
The Sui ecosystem DeFi protocol Full Sail stated that its protocol has been affected by the Switchboard oracle security incident and has decided to gradually wind down operations. Affected protocols include Virtue Money, which reported losses of approximately $455,000, with 45 users liquidated. Switchboard has issued a statement regarding the incident, but as of September 1, it has not provided the technical details requested by Full Sail, nor has it committed to compensation. Mysten Labs rejected Full Sail's request for financial support. Full Sail stated that all remaining liquidity from the protocols will be prioritized for distribution to users, with the team covering any shortfall to ensure community depositors receive priority compensation.