Cetus Protocol, a decentralized finance platform built on the Sui blockchain, has officially relaunched following a significant security breach that resulted in a $223 million exploit.
The attack exposed vulnerabilities in the protocol, prompting the team to take immediate action to rebuild trust and enhance platform security.
As part of its comeback, Cetus unveiled a comprehensive new roadmap focused on strengthening its technology, expanding features, and fostering a more secure and user-centric ecosystem.
Cetus Relaunches with Strong Focus on Open-Source Development
Central to the relaunch is Cetus’s commitment to open-source development. By making its codebase publicly accessible, the protocol aims to increase transparency, invite community collaboration, and facilitate independent security audits.
This move is designed to prevent future exploits and ensure ongoing platform resilience.
Additionally, Cetus has introduced a compensation program to reimburse affected users, demonstrating responsibility and dedication to its community.
This program will help restore user confidence and support the protocol’s reputation in the competitive DeFi space.
Overall, Cetus Protocol’s relaunch represents a strategic effort to recover from the exploit by enhancing security, transparency, and community engagement, positioning itself for sustainable growth on the Sui network.
Cetus Restores All Affected CLMM Pools After $223M Exploit
Cetus Protocol’s team has successfully replenished all affected CLMM (Concentrated Liquidity Market Maker) pools following the $223 million exploit.
This restoration was achieved through a combination of recovered assets, treasury funds, and a $30 million loan from the Sui Foundation, ensuring the protocol’s liquidity is largely restored.
Liquidity providers impacted by the exploit will regain access to their previous positions, with recovery rates ranging between 85% and 99%, depending on the severity of damage each pool experienced.
To address any unrecovered losses, Cetus has allocated 15% of its native CETUS token supply as compensation for affected users. Of this allocation, 5% of tokens are immediately claimable, providing users with quick relief.
The remaining 10% will be gradually unlocked on a monthly basis over the next year, starting from June 10. This phased distribution aims to balance compensation with long-term tokenomics stability.
This comprehensive approach underscores Cetus’s commitment to restoring user trust and ensuring fairness in the wake of the exploit, while also maintaining a sustainable growth path for the platform.
Also Read: Sui Community United With 90% Votes To Approve Returning $162M Frozen Funds From Cetus Exploit
Cetus Exploit: What Had Happened?
A significant exploit occurred on May 22 when an attacker used a flaw in a third-party code library to alter the pricing of the liquidity pool on Cetus Protocol.
Due to this vulnerability, the attacker was able to siphon off a substantial amount of money from the protocol, resulting in a $223 million loss.
The Cetus team worked closely with Sui blockchain validators to recover the stolen assets and quickly halted all operations to stop additional harm.
On May 29, an on-chain governance vote was held to approve the transfer of $162 million in frozen funds to a multisignature (multisig) wallet in order to speed up the recovery process.
This multisig wallet is a crucial step in Cetus’s attempts to regain user trust and restore liquidity by enabling safe asset management and recovery.
Also Read: Sui-Based Protocol Haedal Halts Key Service Amid Cetus Security Breach