Exclusive look at Cetus’ Relaunched Plan

Cetus Protocol is Back

Cetus Protocol, a decentralized exchange that suffered a $220 million hack in May , is now working on becoming open-source after relaunching. The hack exploited a pricing mechanism flaw, causing the exchange to freeze $162 million of stolen funds. Despite shutting down, trade volume on Platform had been increasing. An integer overflow flaw in a shared math library that Company's smart contracts employed was the source of the attack. Due to this vulnerability, an attacker might modify the value of a deposited token, making it appear exponentially higher and causing the platform to lose a significant amount of liquidity.

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According to a statement issued by the organisation's team on Sunday, the protocol, which was the target of one of the biggest DeFi breaches in May, is now fully operational and has strong recovery procedures in place.

Sui blockchain validators froze $162 million linked to the assault shortly after the leak. The platform's rehabilitation was greatly aided by the subsequent return of these monies to the protocol.

How Cetus Responded to Sui Incident

• Identified and patched vulnerability to prevent future attacks.

• Collaborated with Sui validators and community to retrieve quarantined assets.

• Secured recovery loan from Sui Foundation.

• Fixed pool data to restore correct pricing.

• Rebalanced assets and prepared pool refills.

• Developed a new compensation contract to address user losses.

• Conducted thorough security audits on code fixes, contract upgrades, and compensation systems.

R elaunched on June 8 with restored pools and 99% LP access.

• The Cetus Protocol will be restarted on June 8, 2025, allowing full functionality access.

• Steps include pool refill and liquidity recovery.

• Recovered assets from the attacker were returned, rebalanced, and used on-chain swaps with OTC and CEX trades.

• Organisation's team's treasury funds committed to cover liquidity shortfalls, used to acquire key missing coins.

• A dedicated loan from the Sui Foundation was applied to support recovery.

All affected pools have returned to a healthy state after recovery and refilling. Users will regain access to their previous position liquidity at relaunch. If your LP position is from an unaffected pool, your liquidity remains unchanged. However, if your position is from an affected pool, the liquidity recovery rate ranges between 85% and 99%, depending on the degree of attack. LP functions will resume as normal for affected positions, and the particular position NFT of an affected position will serve as a certificate for claiming CETUS compensation.

15% of supply will be used for user compensation vesting

Due to asset limitations, the company cannot restore all affected pools to 100% liquidity immediately. To compensate for this, 15% of CETUS supply will be allocated to the compensation contract, including the team's remaining unvested tokens. The compensation tokens will be vested following a schedule: 5% will be claimable at relaunch, and 10% will be linearly unlocked every month over the next 12 months. The first claim will start on June 10, 2025, UTC. The overall vesting schedule will be slightly adjusted to adapt to the plan. The token redistribution aims to transform CETUS into a more community-driven ecosystem, a positive outcome from a challenging time.

Users praised and Welcomed Cetus

The quick and well-coordinated recovery demonstrates the Sui ecosystem's responsiveness as well as the Cetus Protocol team's dedication. Although the exploit generated significant concerns regarding DeFi's shared library vulnerabilities, customers can now trade on the platform with renewed trust thanks to Cetus' well-organized response and liquidity restoration.