Cetus Protocol Restarts After Exploit, Achieves 85-99% Liquidity Recovery – Coincu

The Cetus Protocol relaunched on June 8, 2025, at 9 AM (UTC+8), achieving a liquidity recovery rate between 85% and 99%.

The relaunch follows a major exploit on May 22, 2025, that significantly reduced liquidity. The Cetus team, with a $30 million USDC loan from the Sui Foundation, and $7 million from its reserves, established a compensation plan with 15% token allocation.

Cetus’ Recovery Measures and Community Response

The Cetus Protocol, a key player in the Sui ecosystem, faced a severe exploit in May 2025. In response, the team allocated $7 million from cash reserves and secured $30 million USDC from the Sui Foundation. The relaunch restored user access to core services including liquidity management and rewards claiming.

The key change involved immediate availability of trading and management features, alongside a comprehensive compensation plan.

“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,” the Cetus team stated in an official statement.

The measures aim to restore confidence within the user community.

Market Insights and Future Security Outlook

Did you know? In the aftermath of similar past incidents, the average total value locked (TVL) recovery rate in decentralized exchanges typically stabilizes within two quarters, often regaining pre-exploit levels due to improved security measures and effective compensatory actions.

Market reactions have been predominantly positive, highlighted by the community and developers endorsing the transparency of the plan. The Cetus team’s detailed report indicates robust recovery prospects, with no significant opposition observed on public forums.

Coincu research highlights potential long-term technological advancements in secure protocol designs as influenced by this incident. Enhanced safety protocols are anticipated to bolster investor and user trust, fostering deeper integration within blockchain ecosystems. Community engagement is expected to be crucial in supporting an impending stable growth trajectory for Cetus.