Cetus Protocol, a key player in the Sui ecosystem, relaunched on June 8, 2025, following a severe exploit. The liquidity recovery reached between 85% and 99%.
Cetus Protocol Recovery
Cetus Protocol relaunched on June 8, 2025, at 9 AM (UTC+8), achieving a liquidity recovery rate between 85% and 99%. This followed a major exploit on May 22, 2025, which significantly reduced protocol liquidity. The Cetus team secured a $30 million USDC loan from the Sui Foundation and allocated $7 million from its reserves to establish a compensation plan for users.
Recovery Measures and Community Response
In response to the incident, the Cetus team allocated $7 million from reserves and garnered $30 million USDC from the Sui Foundation. During the relaunch, users regained access to critical services such as liquidity management and rewards claiming. "Cetus will allocate 15% of the tokens for compensation contracts, with 5% immediately available upon restart and 10% to be linearly unlocked over 12 months starting from June 10, 2025," stated the Cetus team in an official communication.
Market Insights and Future Security Outlook
Following similar past incidents, the average total value locked (TVL) recovery rate in decentralized exchanges typically stabilizes within two quarters, often regaining pre-exploit levels. Market reactions have been predominantly positive, highlighted by community and developer support for the plan's transparency. Coincu research emphasizes potential long-term technological advancements in secure protocol designs, anticipated to bolster investor trust.
The recovery of Cetus Protocol after the recent exploit underscores the importance of security measures and transparency in restoring user trust. The team continues to enhance their technology to ensure stable growth.
