Cetus Protocol Restarts Activities with revised Security Measures following a $223 Million Hack Attack
Revamped Roadmap: Cetus Protocol Releases Plan after Major Exploit
Cetus Protocol, a popular decentralized exchange on the Sui blockchain, is back in action following a massive exploit that led to a staggering loss of $223 million. Here's the latest on their recovery strategy, compensation plan, and future endeavors.
Relaunch, Recovery, and Compensation
Cetus announced a brand-new roadmap, filled with security upgrades, community-focused compensation, and an open-source development model. The team has replaced the depleted liquidity pools using recovered funds, treasury reserves, and a $30 million loan from the Sui Foundation. Users will regain access to their original positions, with recovery rates ranging from 85% to 99%.
To account for the unrecovered losses, Cetus has set aside 15% of its native CETUS token supply for compensation. A fifth of this allocation is immediately available to affected users, with the remaining 10% to be unlocked monthly over a 12-month period starting from June 10. Crucially, this allocation does not increase CETUS inflation, as it uses unvested team tokens within its capped supply. LP position NFTs will serve as redemption certificates for CETUS, ensuring that users can claim their tokens even after withdrawing liquidity.
Security Upgrades and Monitoring
The revamped Cetus has completed new security audits on all patches, contract updates, and the compensation process. Moreover, plans for additional audits and real-time threat monitoring upgrades are on the horizon. The exchange has also launched a white-hat bounty program to encourage ethical hackers to find potential vulnerabilities before they can be exploited.
The legal battle is ongoing, with authorities in multiple jurisdictions working diligently to trace and recover the stolen assets. Cetus claims that most of the stolen funds remain traceable.
Community Engagement and Transparency
On May 29, an on-chain vote was conducted, which approved the transfer of $162 million in frozen assets to a secure multisig wallet. The Sui Foundation lent additional support, issuing a USDC loan to off-set off-chain user losses.
The team has maintained consistent communication with users through updates and forums, helping preserve user trust during the recovery phase.
Market Response and Long-Term Plans
Despite the relaunch, the CETUS token price has seen a 3.36% drop to $0.1145. This downtrend follows the exploit. In case additional funds are recovered during the compensation period, users may redeem their CETUS tokens for USDC.
Post the compensation window's closure, remaining funds will support CETUS token buybacks and the community treasury. Cetus plans to continue its efforts towards transparency and community involvement through open-source development.
Sources:1. Cetus Medium Blog2. Cointelegraph3. Decrypt4. The Block5. CoinDesk
Incorporating insights:
- Cetus is placing a greater emphasis on open-source development and transparency to reduce future vulnerabilities
- The exchange is carrying out re-audits and has introduced a white-hat bounty program to encourage community-driven security efforts
- Cetus has plans to make its protocol more open-source, allowing for community scrutiny and involvement.
- The Cetus Protocol, after the significant exploit, has outlined a new roadmap that focuses on enhanced security, open-source development, and community-driven compensation, using their native CETUS token for providing redressal to affected users.
- In addition to the compensation plan, Cetus is also reinforcing their security measures by conducting re-audits, implementing real-time threat monitoring, and launching a white-hat bounty program to encourage ethical hackers and community involvement.
