Decentralized exchange and liquidity protocol Cetus officially announced its relaunch scheduled for June 8, following a high-profile hack in May that resulted in more than $60 million in losses.
Cetus Protocol is focused on moving past the devastating May security breach with a structured recovery plan in place for impacted users.
Despite the buzz surrounding the relaunch and a surge in SUI and CETUS prices, the funds worth $60 million stolen at the end of last month still have not been recovered.
Cetus reveals plans to address the recent security issue
When the re-launch is done, users can trade their tokens, take care of their liquidity pool positions, and claim rewards. Ahead of the relaunch announcement, a statement details the moves the Cetus Protocol team took.
To begin with, the team has re-filled all impacted CLMM pools with funds from three key sources. Part of the funds were derived from recovered stolen assets, with $160M transferred to a wallet following an on-chain vote by validators. The team also leaned into treasury funds to refill pools and took a $30 million USDC loan for the SUI Foundation.
Cetus CLMM pools were hit by a clever hack that led to the loss of many tokens. The hacker took advantage of a weakness in an open-source library linked to CLMM, emptied the main pools of assets, and carried out numerous on-chain swaps. This caused major issues with pool prices and balances.
However, the decentralized exchange highlighted that they cannot immediately return all the affected pools to full liquidity because of limited resources. To show their commitment, they will use CETUS tokens to help cover the loss in liquidity.
Although they intend to refund funds, Cetus Protocol reports that it will still move forward in its pursuit of the unrecovered funds. The announcement confirmed pending legal action in several jurisdictions and indicated it would use the funds for buybacks or repaying the SUI Foundation loan.
The statement read that they are highly confident that a successful arrest and recovering the remaining assets is only a matter of time.
Cetus Protocol set up safety measures to prevent future cyber crimes
As Cetus Protocol considers a comeback, the DEX has implemented a series of initiatives to prevent a recurrence of the hack. First, the team says it will launch additional code audits for its code base as a safeguard. A previous audit found the Cetus hack was due to a bug in the protocol software.
In addition to the audit, Cetus Protocol will improve monitoring on its system to detect and respond to threats on a real-time basis. In the future, a turn to an open-source protocol and the introduction of bounty products are being rumored.
With these safety updates, Cetus says it wants to build a more community-driven ecosystem. The team believes redistributing CETUS tokens will help the project recover and grow after the recent challenges. They confirmed they are ready to move forward.
Interestingly, the plans for a relaunch have caused the CETUS price to surge quite a bit. Data from CoinMarketCap shows Cetus Protocol’s price is trading at $0.1324, reflecting a 6.96% increase in the past 24 hours.
Earlier, rumors of a widespread refund to hack victims had pushed CETUS price up 35%, but the asset is now down 40% over the past month. SUI price has also jumped by nearly 2% following the relaunch confirmation.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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