MANTRA (om) 
Cetus Protocol Relaunches with New Roadmap After $223 Million Exploit
The Sui network-based decentralized exchange (DEX) Cetus Protocol has officially relaunched, introducing a revamped roadmap, open-source development plans, and a compensation program following a significant $223 million exploit. The relaunch aims to restore trust and improve the overall resilience of the protocol.
Post-Relaunch Strategy and Security Enhancements
In a recent announcement, Cetus Protocol unveiled its updated strategy to bolster security and prevent future vulnerabilities. Key measures include:
- Comprehensive upgrades to monitoring systems.
- Transitioning the protocol toward full open-sourcing.
- Launching a new white hat bounty program to incentivize community-driven security efforts.
To ensure the integrity of its operations, the protocol has completed security audits across all code patches, contract upgrades, and the new compensation contract. Additional audits and real-time threat detection upgrades are planned to further enhance protocol resilience.
Compensation Plan for Affected Users
A significant part of the relaunch includes the compensation of users impacted by the exploit. Cetus Protocol has replenished all affected CLMM pools using a mix of recovered assets, treasury funds, and a $30 million loan from the Sui Foundation. Liquidity providers are expected to regain access to their previous positions with recovery rates ranging between 85% and 99%, depending on the extent of the damage to each pool.
To address unrecovered losses, Cetus has allocated 15% of its native CETUS token supply to affected users. Of this allocation:
- 5% is immediately claimable.
- The remaining 10% will unlock monthly over the next year, starting June 10.
Importantly, this allocation does not introduce new inflation, as it repurposes unvested team tokens within the existing supply cap. Compensation claims are tied to LP position NFTs, which will serve as certificates for CETUS redemption, even if liquidity is withdrawn.
Details of the May 22 Exploit
The exploit, which occurred on May 22, involved an attacker manipulating liquidity pool pricing by exploiting a flaw in a third-party code library. In response, the Cetus team froze operations and collaborated with Sui validators to recover assets. On May 29, an on-chain governance vote approved the transfer of $162 million in frozen funds to a multisig wallet for recovery purposes.
To further mitigate off-chain losses, the Sui Foundation provided a dedicated USDC loan. The attacker declined a $6 million white-hat bounty and has reportedly attempted to launder the stolen assets. However, the Cetus team maintains that most asset movements remain traceable and are confident in the ongoing efforts to recover the remaining funds.
“We are highly confident that successful arrest and recovering the remaining assets is only a matter of time,” the Cetus team stated.
Future Plans and Token Impact
If additional funds are recovered during the compensation period, users will have the option to redeem CETUS tokens for USDC. Once the compensation period concludes, any remaining funds will be allocated for token buybacks and deposited into the community treasury.
Despite the proactive measures, CETUS token prices have continued to decline, dropping approximately 7% on the day of the announcement. This extends a downtrend that has persisted since May, reflecting broader market sentiment and the aftermath of the exploit.
The relaunch of Cetus Protocol marks a critical step in rebuilding trust within the Sui network ecosystem. With enhanced security measures, community-driven initiatives, and a structured compensation plan, the protocol aims to navigate its recovery while fostering long-term growth and user confidence in decentralized exchanges.
