Cetus Protocol, a decentralized exchange operating on the Sui and Aptos blockchains, has officially relaunched following a catastrophic $223 million exploit on May 22.
The protocol, which suffered one of the largest DeFi hacks in May, is now back online with full functionality and significant recovery measures in place, according to a statement released by the Cetus team on Sunday.
Inside the Exploit
The attack stemmed from an integer overflow vulnerability in a shared math library used by Cetus’ smart contracts. This flaw allowed an attacker to manipulate a deposited token’s value, making it appear exponentially higher and draining massive liquidity from the platform.
Shortly after the breach, Sui blockchain validators froze $162 million tied to the attack. These funds were later returned to the protocol, providing a crucial foundation for the platform’s recovery.
Multi-Layered Recovery Plan
Cetus replenished affected liquidity pools using a combination of:
- $162 million recovered from the attacker
- $7 million from Cetus’ internal cash reserves
- A $30 million USDC loan from the Sui Foundation
These efforts have enabled the protocol to restore between 85% and 99% of original liquidity for affected LPs. The remaining balance will be compensated through CETUS token distributions over a 12-month linear unlock schedule, assuming no further recoveries are made from the attacker.
Looking Forward
The rapid and coordinated recovery showcases both the resilience of the Cetus Protocol team and the responsiveness of the Sui ecosystem. While the exploit raised serious questions about shared library vulnerabilities in DeFi, Cetus’ structured response and liquidity restoration now allow users to resume trading on the platform with renewed confidence.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/cetus-protocol-relaunches-after-223m-defi-exploit-restores-up-to-99-liquidity/