After suffering a $22 million exploit that shook confidence across the Sui ecosystem, Cetus Protocol has officially announced its relaunch plan. Once seen as a cornerstone of DeFi activity on Sui, Cetus is attempting to bounce back with a detailed recovery strategy focused on liquidity restoration, smart contract reinforcement, and user compensation.
But can this ambitious roadmap restore community trust and attract users back?
Let’s break down what happened — and where Cetus is headed next.
What Happened: The $22 Million Exploit
On May 17, 2025, Cetus Protocol was the target of a sophisticated exploit that drained roughly $22 million in TVL. The attack exploited vulnerabilities in a low-level pool smart contract, allowing unauthorized manipulation of liquidity and token pricing.
Immediately after the breach, the team paused operations, froze the affected contracts, and began internal and external audits to assess the full impact.
The Recovery Plan: Smart Contracts, Airdrops & LP Revival
In a Medium post, the Cetus team outlined a three-phase recovery strategy:
- Smart Contract Upgrade: The core pools have been rebuilt with enhanced logic and stricter security checks. All contracts have been re-audited before deployment.
- Liquidity Reboot: CETUS/USDC, SUI/USDC, and wETH/USDC pools are the first to be relaunched. The team is incentivizing LPs with high-yield staking programs and airdrop rewards to bootstrap liquidity quickly.
- User Compensation: A portion of protocol fees and reserve funds will be used to gradually compensate affected users. A snapshot mechanism ensures accurate refund allocations.
The relaunch is already live with trading resuming on the new pairs across the rebuilt interface.
Can Cetus Regain Its Position in DeFi?
Before the hack, Cetus was one of the most active DEXs on the Sui network, with rising TVL and growing integrations. The exploit not only impacted user funds but also posed a reputational risk in a hyper-competitive DeFi landscape.
However, early signals suggest optimism. Initial liquidity migration has exceeded $2 million in the first 24 hours post-relaunch, and on-chain data shows LPs are gradually returning.
The protocol’s future now hinges on two critical factors:
- Whether the recovery incentives are enough to rebuild trust.
- And whether Cetus can maintain security assurance moving forward.
Final Thoughts: What This Means for DeFi Security
Cetus Protocol’s relaunch marks a key moment in the evolving DeFi narrative. While the team’s fast response and recovery roadmap are commendable, the exploit serves as yet another reminder: security remains the Achilles’ heel of DeFi.
For the protocol to succeed, it must not only restore funds—but also rebuild its reputation from the ground up.
Whether Cetus can truly regain DeFi’s trust will depend on how it handles the coming weeks—and whether users believe the relaunch is more than just a patch.
