What is Cetus Protocol (CETUS)?

Deep Dive

1. Core Exchange Mechanism

Cetus operates as a decentralized exchange (DEX) using Concentrated Liquidity Market Makers (CLMM), an advanced model adapted from protocols like Uniswap V3. This allows liquidity providers to allocate funds within specific price ranges rather than across the entire curve, dramatically improving capital efficiency. Traders benefit from reduced slippage and tighter spreads, particularly for stablecoin pairs and high-volume assets. The protocol supports multiple order types including swaps, limit orders, and range orders.

2. Ecosystem Integration Framework

Cetus functions as foundational DeFi infrastructure through its "Liquidity as a Service" model. Its SDK enables seamless integration with other applications like lending protocols, leveraged yield farms, and derivative platforms. Developers can embed Cetus' liquidity directly into their dApps, creating custom trading interfaces while tapping into shared liquidity pools. This composability has made it a backbone of Sui's DeFi ecosystem, supporting over 17 million accounts as of August 2025.

3. Sustainable Incentive Structure

The protocol employs a dual-token system: CETUS (utility/governance token) and xCETUS (staking derivative). CETUS holders stake tokens to receive xCETUS, which accumulates protocol fees and governs platform upgrades. This model aims to sustainably reward active participants while aligning long-term incentives. Following a May 2025 exploit, Cetus implemented enhanced security measures including open-sourced code and real-time monitoring.

Conclusion

Cetus Protocol fundamentally provides high-efficiency trading infrastructure through concentrated liquidity mechanics and deep ecosystem composability. How will its evolving security framework balance decentralized innovation with robust asset protection?