Deep Dive
1. Security Overhaul (May 2025)
Overview: A vulnerability in the math_u256::checked_shlw function allowed infinite LP minting, leading to a $223M exploit. Post-attack, Sui validators deployed emergency transaction controls and code patches.
Technical details: The overflow flaw enabled attackers to manipulate liquidity pool pricing. Post-fix, Cetus introduced real-time threat monitoring and stricter input validation. A $6M white-hat bounty program was launched to incentivize vulnerability reporting.
What this means: This is bullish for CETUS because enhanced security reduces future exploit risks, though the incident initially eroded trust. Users benefit from safer LP positions and faster emergency response protocols. (Source)
2. Open-Source Transition (June 2025)
Overview: Cetus fully open-sourced its codebase post-relaunch, enabling community-driven audits and collaborative improvements.
Technical details: The move included publishing smart contracts for its Concentrated Liquidity Market Maker (CLMM) and compensation system. Third-party audits by OtterSec and Halborn were conducted, with plans for continuous review cycles.
What this means: This is neutral-to-bullish – transparency builds trust but exposes code to scrutiny. Developers gain tools to build atop Cetus, potentially expanding its ecosystem utility. (Source)
3. Aggregator Route Expansion (August 2025)
Overview: The Cetus Aggregator added FullSailFi’s dynamic fee pools, optimizing slippage and liquidity depth.
Technical details: The update introduced new routing algorithms that compare prices across DEXs and liquid staking protocols. It reduced average swap slippage by ~15% for large trades.
What this means: This is bullish for CETUS because better execution attracts more traders, increasing protocol fees and token demand. Users get tighter spreads, especially for LST assets like stSUI. (Source)
Conclusion
Cetus has prioritized security and transparency since its 2025 exploit, while iterating on its core swap infrastructure. The protocol’s shift to open-source and Aggregator enhancements position it for sustainable growth on Sui.
How will CETUS balance decentralization with security as it scales?