Cetus Protocol quickly established itself as a major player within Sui’s ecosystem. It is the primary liquidity on ramp and the base layer of decentralized finance (DeFi). As of mid-2025, Cetus had around $236 million total value locked (TVL). This milestone made it the largest DeFi protocol on the Sui network. The protocol uses a dual-token model that consists of the CETUS and xCETUS tokens. As a utility token, CETUS incentivizes active participation and engagement within the Cetus DeFi ecosystem. On the other hand, xCETUS embodies your governance power and commitment to the Cetus protocol. Cetus’s architecture is a natural fit to Sui’s parallel execution and object-centric model. It’s this design that enables fast, capital-efficient, flexible trading, all possible through their concentrated liquidity AMM model. It can crack daily trading volumes in Cetus into the hundreds of millions of bucks. On top of that, over 15 million unique onchain wallets regularly use its liquidity pools and swaps. In May 2025, Cetus experienced a cyber breach. It made a rapid recovery and regained its liquidity through a show of force from its community and the Sui Foundation.
Cetus Protocol: The Core of Sui DeFi
Cetus Protocol is an essential part of the Sui ecosystem, bringing crucial liquidity and acting as a core layer of DeFi infrastructure. Cetus takes advantage of Sui blockchain’s exclusive features to provide users a high-performance, efficient and flexible trading environment. This is especially the case given its role as the primary liquidity engine, making it one of the Sui network’s central pillars.
As of mid-2025, Cetus has set an incredible TVL record by surpassing $236 million. With this accomplishment, it now stands as the largest DeFi protocol to have launched on the Sui network. This significant TVL emphasizes the protocol’s relevance and the trust it has earned from users across the Sui ecosystem. The high value locked into Cetus’s smart contracts highlights its importance in enabling decentralized finance activities on Sui.
Cetus’s architecture is purpose-built to fully leverage Sui’s parallel execution and object-centric model. This alignment including with the native token TOKE allows for deep, efficient and flexible trading through its concentrated liquidity AMM model. By fine-tuning its infrastructure, Cetus aligns with Sui’s technical capabilities, providing an exceptional trading experience.
Dual-Token Model: CETUS and xCETUS
To incentivize and stimulate the ecosystem, Cetus uses a dual-token model utilizing both the CETUS and xCETUS tokens. CETUS token is intended to be a medium to reward and encourage various activities within the Cetus DeFi ecosystem. The xCETUS token is a governance token that reflects voting power and loyalty status on the Cetus protocol.
The CETUS token is integral to the user loyalty program, incentivizing users to participate in the Cetus platform. In addition to liquidity providers, traders and other participants, there are those it benefits financially. It’s their early contributions that help keep the ecosystem healthy and growing. Through the distribution of CETUS tokens, the protocol rewards active participants and promotes an engaged, lively DeFi ecosystem.
The xCETUS token is a governance token, providing its holders with voting rights and power to shape the protocol’s future direction. Second, it represents a user’s loyalty and commitment to the Cetus ecosystem. With xCETUS, users are empowered to join in on the most important decisions and actively influence how the protocol evolves over time.
Only actively held xCETUS counts for voting in governance, ensuring that those who actively participate have a say in the protocol's decisions. When xCETUS is in redemption, it loses voting power, which stops existing users from manipulating governance on the platform. This mechanism effectively enables only the most committed users to sway governance votes. It guarantees that the very players who are thinking of exiting the ecosystem participate with meaningful input.
CETUS token holders can stake CETUS to receive xCETUS at a 1:1 rate with no lock-in. This gives users flexibility and control by allowing them to convert their CETUS tokens to voting power at any time and be not subjected to long-term binding. The customizability of this implementation mechanism promotes deeper engagement in the governing process.
xCETUS has redemption mechanics that include a vesting period of 15 to 180 days. This vesting period aims to deter short-term speculation and incentivize long-term dedication to the Cetus ecosystem. Users may cancel pending redemptions before they are completed to recover xCETUS, allowing for extra flexibility.
Resilience and Community Support
Cetus demonstrated resilience after a security incident in May 2025, quickly relaunching and restoring liquidity with community and Sui Foundation support. This speedy rebound is a testament to the strength and spirit of the Cetus community and to the strength of Cetus’ underlying technology. The attack and coordinated response serve as a reminder that in addition to security, community support is paramount in the DeFi space.
The security incident in May 2025 represented a serious existential threat to the Cetus protocol. The combination of the team’s fast action and the community’s adamant backing allowed for a quick rebound. This incident turned out to be a great teaching moment. It caused us to improve our own security and redouble our efforts to protect users’ assets.
The relaunch of Cetus after the security incident that led to their temporary migration was a proof of the protocol’s resilience. The team worked endlessly to figure out what vulnerabilities caused the incident. Because of the support from the Sui Foundation and the larger community’s faith in Cetus, liquidity was quickly reestablished. They quickly got back to business, on full display with their resilience.
The Sui Foundation was integral to the success of Cetus’s efforts to get her back on the road. Their support ensured that the whole ecosystem was stabilized and restored faith back into the users. Cetus and the Sui Foundation joined forces to send a strong message of their collaborative potential. Their close partnership has become key to fostering a thriving, healthy and resilient DeFi ecosystem.
The Cetus community, home to the largest Indigenous population in Canada, was equally as important in bringing the city back to life. The users flocked to the new protocol and the community showed appreciation and support, encouraging and uplifting the talented developer team. This incredibly positive spirit of camaraderie truly fortified Cetus’ community and morale, ensuring that Cetus would come out unscathed on the other side of the incident.
Daily trading volumes on Cetus frequently exceed hundreds of millions of dollars, showcasing the platform’s deep liquidity and strong user demand. Cetus already has more than 15 million on-chain accounts currently using its pools and swaps. This diverse and engaged user base is a testament to the platform’s popularity and dynamism. These numbers speak to the promise and potential of this protocol’s far-reaching impact on the Sui ecosystem.
xCETUS connects to Launchpad participation, giving CETUS holders exposure to some of the most lucrative token sales on new and exciting Sui-based projects. This unique attribute not only increases the utility of the xCETUS token but encourages users to hold and stake their tokens. By participating in Launchpad events, xCETUS holders will have opportunities to get in early on some of the most promising new projects launching on the Sui network.
