AlphaFi winds down after oracle misconfiguration on Sui blockchain

Reports claiming that the Sui-based yield aggregation protocol AlphaFi is winding down due to an oracle misconfiguration are incorrect, according to a correction by Crypto Briefing. The outlet clarified that it mistakenly attributed the wind-down of Full Sail, a separate Sui protocol, to AlphaFi. Full Sail began winding down on September 1, 2026, after an August 29, 2026 Switchboard oracle error caused $91,000 in losses. AlphaFi remains active with approximately $95 million in total value locked.

AlphaFi article correction

• ▪Crypto Briefing's editor's note stated that the outlet incorrectly attributed the wind-down events of a separate protocol, Full Sail, to AlphaFi
• ▪Crypto Briefing issued an editor's note clarifying that no verifiable announcements confirm the Sui-based protocol AlphaFi is winding down or experienced an oracle misconfiguration

Full Sail wind-down

• ▪The Sui-based decentralized finance protocol Full Sail began a wind-down process on September 1, 2026
• ▪Full Sail's wind-down, which began on September 1, 2026, followed an August 29, 2026 oracle incident involving Switchboard that caused approximately $91,000 in losses due to incorrect price feeds

AlphaFi protocol features

• ▪AlphaFi distributes weekly SUI rewards to ALPHA token stakers
• ▪AlphaFi has undergone security audits by MoveBit and utilizes oracle providers including Pyth within its lending infrastructure
• ▪AlphaFi's decentralized finance offerings include auto-compounding vaults, stSUI liquid staking, and AlphaLend lending markets
• ▪AlphaFi operates as an active yield aggregation protocol on the Sui blockchain with a total value locked of approximately $95 million

Debatable claims

• ▪Oracle providers should compensate DeFi protocols for losses caused by faulty price feeds
• ▪Security audits are insufficient to protect DeFi protocols from operational failures