Volo Protocol, a decentralized finance (DeFi) platform built on the Sui blockchain, has reported a security breach that resulted in a loss of approximately $3.5 million from three vaults containing wrapped bitcoin (WBTC), XAUm (tokenized gold), and USDC (a stablecoin). In response to the hack, Volo has frozen all vaults and is working with the Sui Foundation and on-chain investigators to mitigate damage and trace the stolen funds. The protocol has confirmed that the remaining $28 million in total value locked (TVL) across other vaults is secure and that they are prepared to absorb the financial loss rather than pass it on to users. This incident comes shortly after the KelpDAO exploit, which drained millions and has raised significant concerns about security within the DeFi sector. To date, DeFi has experienced around $7.78 billion in hacks, with bridge protocols accounting for an additional $2.90 billion in losses, bringing the total to over $10 billion. Volo Protocol intends to publish a comprehensive post-mortem following its investigation.