Cetus Protocol is a Concentrated Liquidity Automated Market Maker (CLMM AMM) deployed on two next-generation blockchains — Sui and Aptos — both built on the Move programming language.
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1. ✅ Vision & Role
Cetus aims to become the core liquidity infrastructure for the Move-based DeFi ecosystem. It's more than just a DEX — it provides essential tools and features for:
Capital-efficient liquidity provision.
Low-slippage trading experiences.
Seamless integration for other DApps and protocols.
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2. ⚙️ How It Works
Cetus uses the CLMM model similar to Uniswap v3, where liquidity providers (LPs) can choose a specific price range to concentrate their liquidity.
Benefits include:
Improved capital efficiency.
Higher returns if the selected range is accurate.
Potentially lower impermanent loss.
Additional features:
Smart routing: Optimizes swap paths for best rates.
Limit orders: Users can place buy/sell orders at preset prices.
Open SDK & API: Enables integration with aggregators and third-party apps.
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3. 🌐 Multichain Deployment: Sui & Aptos
Both Sui and Aptos are Layer 1 chains using the Move language — designed for speed, low fees, and asset-centric security.
Cetus is one of the first protocols to deploy cross-chain across these two networks, helping unify liquidity.
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4. 💰 CETUS Tokenomics (as of May 28, 2025)
Total supply: 1 billion CETUS
Circulating supply: 725.32 million CETUS
Market cap: ~$121 million USD
Fully diluted valuation (FDV): ~$166.85 million USD
24h trading volume: ~$158 million USD
Volume/Market Cap ratio: ~130% (indicates high liquidity)
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5. 🔓 The May 2025 Hack
On May 22, 2025, Cetus was exploited due to an integer overflow bug in its internal liquidity calculation function:
The attacker used flash loans to open fake LP positions within a tight price range.
Due to a miscalculation, they withdrew more tokens than deposited.
Estimated loss: ~$223 million USD. About ~$162 million has been recovered.
The protocol halted liquidity-related functions and is working with auditors and ecosystem partners to investigate.
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6. 📊 Current Status (Late May 2025)
Deployed on: Sui & Aptos
AMM type: CLMM (Concentrated Liquidity)
TVL before hack: ~$280 million USD
TVL after hack: ~$35.7 million USD (currently recovering)
Token utility: Governance, staking, liquidity incentives
Notable competitors: Turbos (Aptos), DeepBook (Sui), various Uni v3 forks
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7. 💬 Neutral Assessment
Cetus remains one of the most important liquidity protocols in the Move ecosystem.
Technologically advanced with a wide feature set.
However, the 2025 hack exposed weaknesses in logic validation and testing, despite audits.
The project continues operating, but community trust will take time to rebuild.
