What is Cetus Protocol (CETUS)?

Deep Dive

1. Purpose & Core Infrastructure

Cetus Protocol aims to build a robust and flexible liquidity network, enhancing trading and capital efficiency for DeFi users. It operates natively on the Sui and Aptos blockchains, positioning itself as foundational DeFi infrastructure for these ecosystems. Its permissionless standard means anyone can create trading pools or incentivize liquidity without central approval (CoinMarketCap).

2. Technology: Concentrated Liquidity Market Maker (CLMM)

The protocol's key innovation is its CLMM model. Unlike traditional automated market makers that spread liquidity across all prices, CLMM allows liquidity providers to concentrate their capital within specific price ranges. This increases capital efficiency, leading to deeper liquidity and lower slippage for traders within those ranges. The design integrates concepts from established protocols like Uniswap V3 and Trader Joe (CoinMarketCap).

3. Ecosystem & Tokenomics

Cetus emphasizes composability, promoting a "Liquidity as a Service" model. Developers can integrate its liquidity into products like vaults or derivatives using its SDK. Sustainability is managed through a double-token model involving CETUS and xCETUS. CETUS is the native utility and governance token, while xCETUS is a staking derivative designed for long-term incentivization and protocol earnings distribution (CoinMarketCap).

Conclusion

Cetus Protocol is fundamentally a specialized DEX engine for the Sui and Aptos networks, combining capital-efficient liquidity pools with a composable design for broader ecosystem integration. How will its focus on serving as core infrastructure influence its adoption as these blockchains evolve?