Decentralized exchange protocols leader Cetus Protocol returned to operation yesterday following a severe oracle-based exploit estimated to have cost $233 million.

Rapid Response: Cetus Implementing Recovery Plan

• The attacker manipulated price curves and reserve calculations to drain assets from major pools.
• Cetus utilized a $30 million bridge loan from the Sui Foundation, community governance funds, and its own reserves.
• Protocol implemented a recovery mechanism achieving 85-99% repair for affected liquidity pools.

Protocol Compensation Plan Announced

Cetus is responding to liquidity provider losses with a token compensation strategy, allocating 15% of its CETUS supply for distribution.

Supporting Cetus demonstrates our fully pragmatic approach to foundation work, rather than blindly adhering to decentralization ideals.

Compensation Details

A compensation plan will distribute CETUS tokens to eligible users. The initial disbursement unlocks 5%, with vesting details as follows:

• Initial unlock: 5%
• Additional unlock: 10% over a 12-month period
• Outstanding recovered funds will be offered instead of tokens

Coordination among validators to quarantine attacker transactions highlights the ability of distributed systems to act decisively without central command coordination.

Sui Foundation Provides Emergency Support

Citing the swift, coordinated validator response and community action as “incredibly positive,” Sui Foundation Managing Director Christian Thompson emphasized decisive support:

“This Is The Job Of Any Decentralized Ecosystem”

Defending against such attacks requires effective coordination and authority.

Responding to concerns about centralization that followed the Foundation’s intervention, Thompson clarified:

True decentralization isn’t paralysis—it’s an ecological immunity system capable of immediate response.

Market Reactions

The incident follows performance trends on both sides:

• SUI token down 6.88% YoY following exploit price of $4.15, despite recent 5% 24-hour gain
• CETUS down approximately 75.5% from ATH, 30% lower since exploit day despite allocation announcement