Cetus Protocol Announces Relaunch and Recovery Plan After Exploit Setback

In a pivotal move to regain community trust and rebuild momentum, Cetus Protocol has officially announced its relaunch strategy and recovery plan following a recent security exploit, as outlined in its latest Medium post.

On May 14, 2025, Cetus Protocol suffered a critical exploit that impacted the liquidity and stability of its pools. The attacker exploited a vulnerability through the router contract, enabling manipulation of token swaps. The breach caused the protocol to halt operations immediately and triggered a comprehensive investigation and community consultation process.

Key Highlights of the Recovery and Relaunch Plan:

1. CETUS v2 Launch:
Cetus has confirmed the development and upcoming launch of CETUS v2 on the Sui and Aptos blockchains. The upgrade will feature enhanced security architecture, new incentives for liquidity providers, and updated mechanisms designed to prevent future exploits.

2. Recovery Token (veCetus):
To compensate users affected by the exploit, the protocol will introduce a new token, veCetus (vested CETUS), aimed at providing long-term recovery and governance participation. A snapshot of affected wallets has been taken, and eligible users will receive veCetus distributions proportional to their losses.

3. Improved Security Audits:
The team has onboarded multiple third-party auditors to conduct in-depth reviews of the revamped protocol. Cetus is working with leading blockchain security firms to validate every line of code before relaunch.

4. Governance and Transparency:
Cetus Protocol pledges to shift toward a more community-governed model. It will enable veCetus holders to vote on future decisions, including emissions, partnerships, and treasury allocations.

5. Liquidity Mining and New Incentives:
To kickstart v2, Cetus will roll out a new liquidity mining campaign and partnership-focused yield strategies, ensuring early adopters are rewarded.

The Road Ahead

Despite the setback, Cetus Protocol is determined to rebuild. The relaunch is a signal of resilience and a commitment to decentralization, security, and transparency.

The team closed its post by thanking the community: “We acknowledge the frustration and losses, but we are committed to coming back stronger, with your support and with lessons learned.”

The relaunch timeline is expected to be announced soon, with beta testing likely to precede the full public deployment.

About Cetus Protocol:
Cetus is a pioneering DEX and concentrated liquidity protocol built on Sui and Aptos blockchains, aiming to bring efficient trading and capital utilization to the Move ecosystem.