When $220M Vanishes: The Epic Comeback of Cetus Protocol! 💸✨

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In a twist worthy of a Dostoevsky novel, Cetus Protocol has risen from the ashes, just two weeks post a hack that left its concentrated liquidity market maker pools gasping for breath.

Normal Users’ LP Functions to Resume

Ah, the Cetus Protocol! A beacon of hope in the decentralized exchange (DEX) universe, now back on its feet after a sophisticated heist that made even the most seasoned hackers blush. With a generous infusion of $7 million from its treasury and a $30 million USDC loan from the Sui Foundation, the affected pools are now healthier than a kale smoothie on a Monday morning.

According to a statement (which, by the way, is no longer available—404 error, anyone?), liquidity for users in unaffected pools remains as stable as a cat on a sunny windowsill. For those caught in the crossfire, fear not! The liquidity recovery rate now dances between 85% and 99%, depending on how much the pool was affected. Your liquidity provider (LP) functions will resume as if nothing ever happened, and your position NFTs will serve as golden tickets for claiming CETUS compensation, even if you decide to withdraw everything in a dramatic flourish.

Let’s not forget the hack that made headlines, siphoning over $220 million in digital assets by exploiting a vulnerability that was about as secure as a paper bag in a rainstorm. But, as reported by TopMob and other media outlets, $162 million of the stolen loot was frozen faster than you can say “legal action” thanks to a heroic joint effort by validators.

Days after the debacle, Cetus Protocol announced plans for an on-chain vote to recover the frozen assets. They even considered offering the hacker(s) a reward for returning the funds—because who doesn’t love a good redemption arc? But alas, the bounty went unclaimed, leading to a legal pursuit that could rival any courtroom drama.

Meanwhile, the protocol has decided to allocate a hefty portion of its native CETUS tokens for compensation. “We are allocating 15% of CETUS supply to the compensation contract, including the entirety of the team’s remaining unvested tokens, accounting for 10% of the total supply,” they stated, probably while sipping on overpriced coffee.

Five percent will be immediately claimable at relaunch, with the remaining 10% unlocking monthly over the next year, starting June 10, 2025. This plan ensures no additional inflation to the total supply—because who needs that kind of drama in their lives?

Any future recovered funds will be used to offer users the option to forfeit the remaining CETUS for USDC during the compensation period, repay the Sui Foundation loan, or—if the compensation period is over—conduct extensive CETUS buybacks and store them in the community treasury. Because why not keep the party going?

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2025-06-09 01:57