Cetus Vows Full $223M User Payback After DeFi Exploit—Because ’Trust Us’ Worked So Well Before

DeFi protocol Cetus shocks the crypto-sphere by pledging to cover every cent of its $223M hack—no haircuts, no IOUs. Just don’t ask where the funds are coming from.

From Exploit to Exit Strategy

The platform’s ‘full recovery’ promise reads like a Hail Mary pass after attackers drained its liquidity pools. Auditors are already side-eyeing the math.

Bankers Hate This One Trick

While TradFi gatekeepers would freeze withdrawals for months, Cetus is betting that instant restitution will keep degens from fleeing. A novel concept: honoring liabilities.

Closing thought: Maybe next time they’ll try that revolutionary ‘security-first’ approach Wall Street’s been droning about since 2017.

“Because full recovery is dependent upon the results of the community vote, we humbly ask for the SUI community’s full support to recover the funds via the upcoming vote,” Cetus wrote. “We recognize that this is an extraordinary ask forced by our actions, however we think it is the right decision especially for those affected,” it added. 

Cetus further clarified that recovery efforts will commence immediately following the community vote, with a comprehensive plan to be announced thereafter. The platform emphasized that maintaining user trust remains its highest priority and reaffirmed its full commitment to rectifying the incident.

“We ask that everyone comes together to pass the vote, make everyone whole, and rebuild a stronger, more resilient Sui DeFi ecosystem,” Cetus wrote. 

On May 22, the DeFi platform suffered a $223 million security breach that triggered a sharp decline in several Sui-based tokens, with some losing up to 90% of their value. The platform’s native token, CETUS, also dropped by 50% amid the incident.

Alert Announcement

There was an incident detected on our protocol and our smart contract has been paused temporarily for safety. The team is investigating the incident at the moment. A further investigation statement will be made soon. We are grateful for your patience.

An investigation later revealed that the exploit targeted a weakness in Cetus’s Concentrated Liquidity Market Maker (CLMM) pool smart contract. This flaw originated from the open-source library code used in its development. The attacker manipulated an overflow check vulnerability to drain liquidity from the pool before the protocol’s core CLMM pools were promptly disabled. Since then, Cetus has implemented a patch to address the smart contract vulnerability.

The incident has sent ripples through the DeFi community, emphasizing the ongoing challenges platforms face in securing complex smart contracts. 

As decentralized finance continues to evolve rapidly, the importance of robust security measures and transparent communication remains paramount to maintaining user confidence and fostering sustainable growth in the sector.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.