Cetus Protocol Digs Into Treasury Reserves to Cover User Losses—Because What’s a Crypto Project Without a Bailout?

DeFi’s latest ’oops’ moment gets a Band-Aid solution.

Cetus Protocol just pulled the ultimate crypto move—tapping its own treasury to backstop losses. Because nothing says ’trust us’ like dipping into rainy-day funds when things go sideways.

No numbers disclosed (shocking), but the gesture reeks of damage control. Will users get made whole? Or is this just another case of ’decentralized’ platforms playing central banker?

Pro tip: Maybe don’t lose the money in the first place? Just a thought.

CETUS and SUI recover market prices

SUI itself continues to carry transactions, though its total value locked fell since the incident. SUI TVL slid from $2.13B to $1.74B. The SUI token recovered in the past days from $3.43 to $3.70, but the loss of liquidity from Cetus was felt by the entire protocol. 

The impact of Cetus was also felt in overall SUI activity. Active addresses fell from 1.7M daily and are now dipping under $300K. SUI was just breaking out with meme token trading, with Cetus becoming one of the major sources of on-chain activity.

Following the message of the potential recovery, CETUS tokens also rallied, adding 23% within hours to $0.15. CETUS is still down from its quarterly peak above $0.23. 

SUI memes may take longer to recover, as some of the hottest tokens erased most of their value. 

SUI is still seen as a strong bet for a potential bull run, given the fast recovery following the hack.

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