Summary of Cetus Protocol Ecosystem Recovery Announcement
Cetus Protocol will officially resume operations at 11:00 (UTC+8) on 8/6/2025, with all functions such as conversion, LP position management, adding/withdrawing liquidation, fee collection, and rewards ready. Liquidation will be implemented through three main channels: (1) assets recovered from the attacker through on-chain voting by Sui validators; (2) reserve funds from the Cetus team with a commitment to use 100% of cash reserves, approximately 7 million USD in primary assets; (3) a special loan of 30 million USDC supported by the Sui Fund for recovery.
For affected pools, the liquidation recovery rate will range from 85% to 99%, depending on the extent of damage. At the time of system reactivation, it will not be possible to fully restore 100% liquidation for all pools due to asset limitations. To handle the remaining losses, Cetus will use CETUS Token as a compensation tool. Specifically, 15% of the total CETUS supply will be placed in a compensation contract, including 10% from the team's unvested Tokens.
Upon system reopening, 5% of the total CETUS supply will be immediately released to users, with the remaining 10% to be linearly unlocked monthly over the next 12 months, synchronized with the team's previous vesting schedule. To prevent inflation, Cetus affirms no new Token issuance and will make slight adjustments to this allocation plan. If additional assets are recovered in the future, they will be used to compensate users or repurchase CETUS in the market, optimizing benefits for the cryptocurrency ecosystem community.
This support and supplementation process plays a crucial role in stabilizing liquidation order, limiting deadlock potential, and protecting DeFi balance. Transparent commitment, clarity, and blockchain verifiability are key factors in rebuilding community trust in CETUS and related DeFi services.
