What is Cetus Protocol? Information about CETUS Token

Table of Contents

What is Cetus Protocol?

Cetus Protocol is an AMM DEX platform that employs the “Concentrated Liquidity” (Concentrated Liquidity Market Maker – CLMM) mechanism, developed within the Sui and Aptos ecosystems.

Cetus Protocol aims to build a robust and flexible liquidity network, offering an optimized trading experience for DeFi users.

On November 6, 2024, Binance announced the listing of Cetus Protocol as a seedtag.

Main Products of Cetus

Cetus Protocol is built using the MOVE programming language—the core language of Aptos and Sui. As a decentralized exchange (DEX), Cetus offers trading tools, liquidity provision, and earning features for users. Key features include Swap, Earn, Launchpad, Bridge, and Stats.

Swap

The Swap function allows users to directly exchange tokens while displaying their price charts. Cetus includes slippage adjustment and competitive transaction fees, lower than other DEXs on the Sui network, like Turbos or Suiswap (0.25% for some token pairs). However, Cetus currently supports only 13 token pairs and has limited liquidity pools.

Earn

Cetus provides various earning options through liquidity provision, farming, and Vault.

Liquidity Pools operate on a CLMM model, enabling liquidity providers to add tokens within specific price ranges to maximize returns. Cetus offers three price range modes with varying risk and return profiles:

Suggested: Platform-suggested price range (based on recent 7-day statistics), low risk, low APR.
Full range: Allows liquidity provision across all price ranges, ideal for safer, less market-sensitive investments.
Custom: Lets users customize their price range, offering higher APR for market-savvy investors.

Farm and Vault: Users can stake or provide liquidity to earn SUI rewards. Supported token pairs include haSUI-SUI, afSUI-SUI, and vSUI-SUI. Vault also enables users to deposit tokens for additional returns.

Launchpad

Cetus’ Launchpad is a platform for new projects, similar to Binance Launchpad. Users deposit SUI to receive allocation based on their contribution. The more SUI deposited, the higher the allocation.

Bridge

The Bridge function integrates with Portal Bridge, facilitating the transfer of various assets (tokens, NFTs) across different chains, making it easier for users to manage cross-chain assets.

Stats

The Stats feature allows users to view and track essential data on the platform, such as TVL (Total Value Locked), trading volume, transaction count, and top liquidity pools.

Currently, Cetus Protocol has a TVL of $220 million and a trading volume of $340 million.

Highlights of Cetus Protocol

Cetus Protocol possesses several unique features that enhance user experience and effectiveness:

Permissionless tools and features: All tools and features on Cetus Protocol are permissionless, enabling easy and instant access for users and other applications.
Highly customizable liquidity protocol: The CLMM-based liquidity protocol lets users execute complex trading strategies similar to those on centralized exchanges (CEXs). This benefits liquidity providers (LPs), allowing them to maximize returns through varied Maker strategies in liquidity pools.
Liquidity as a Service: Cetus Protocol promotes “liquidity as a service,” enabling other applications to integrate Cetus liquidity into their products easily, fostering a flexible and scalable DeFi ecosystem.
Dual-token model: With CETUS and xCETUS, Cetus Protocol encourages active user participation by offering various benefits, from protocol governance to optimized earnings from liquidity pools.

Team

Information on the Cetus Protocol development team is currently being updated.

Investors

Cetus Protocol has completed two significant funding rounds:

On May 2, 2023, Cetus successfully raised capital from major funds like Kucoin Ventures, Coin98 Ventures, OKX Blockdream Ventures, Animoca Brands, Jump Crypto, NGC Ventures, Adaverse, Comma3 Ventures, IDG Capital, AC Capital, and Leland Ventures.
On February 29, 2024, Cetus received additional investment from the Sui Foundation.

Similar Projects

Cetus Protocol operates similarly to popular DEXs like Uniswap and PancakeSwap, providing DeFi users with diverse options.

Overview of CETUS Token

The CETUS Token is the project token of Cetus Protocol, with the following details:

Token Name: Cetus
Token Symbol: CETUS
Blockchain: Sui
Smart Contract: 0x6864a6f921804860930db6ddbe2e16acdf8504495ea7481637a1c8b9a8fe54b::cetus::CETUS
Price (as of November 7, 2024): $0.3
Market Cap: $100 million
Fully Diluted Market Cap: $300 million
Total Supply: 1,000,000,000
Max Supply: 1,000,000,000
Circulating Supply: 320,000,000

CETUS Token Allocation and Release Schedule

CETUS token allocation is planned as follows:

Community and LP (Liquidity Provider): 50% distributed through farming activities and liquidity incentive programs.
Development Team and Advisors: 20% locked for 12 months, with gradual release over the next 24 months.
Investors: 15% locked for 6 months, with quarterly release over the next 12 months.
Treasury: 15% reserved for initial liquidity, long-term community campaigns, and insurance funds.

Use Cases for CETUS Token

CETUS token serves multiple purposes, including:

Protocol governance: CETUS allows users to participate in governance decisions on Cetus Protocol.
Platform utilities: CETUS is the primary medium for interacting with and using services on the platform.

In addition to CETUS, xCETUS is the second token in the ecosystem with distinct features:

DAO governance: xCETUS supports users in proposing and voting within the Cetus DAO.
Enhanced Yield Farming: xCETUS boosts farming rewards in liquidity pools.
Launchpad Participation: xCETUS is used to participate in new projects on the launchpad.

Users can convert between CETUS and xCETUS under specific conditions:

Converting CETUS to xCETUS: Instant at a 1:1 ratio.
Converting xCETUS to CETUS: Requires a waiting period with conversion rates as follows:
- 15 days at a 1:0.5 ratio.
- 180 days at a 1:1 ratio.

Where to Buy CETUS Token?

CETUS Token is available for trading on major exchanges like Binance, OKX, and others.

Evaluating the Potential of Cetus

To assess the potential of Cetus Protocol, we can look at it from several perspectives:

AMM with CLMM: Cetus applies the Concentrated Liquidity Market Maker (CLMM) mechanism, an advanced approach compared to traditional AMMs. Thanks to CLMM, Cetus optimizes capital efficiency, reduces slippage, and lowers transaction fees. This is highly beneficial for liquidity providers, especially when attracting experienced investors with complex trading strategies.
Permissionless Protocol: The permissionless nature of Cetus enables flexibility and easy integration with other projects, encouraging growth within the ecosystem.
Built on Sui and Aptos: These are two emerging blockchains that are gaining significant attention for their high speeds and low transaction costs. If Sui and Aptos continue to develop, Cetus will have the opportunity to expand its user base and liquidity thanks to a strong connection with these ecosystems.
MOVE Language: This is the programming language of Sui and Aptos, designed with a focus on high security, building trust with users in terms of asset safety and protection on the platform.
Diverse Ecosystem Features: Cetus offers a range of features such as Swap, Earn, Launchpad, Bridge, and Stats, creating a versatile ecosystem. This not only satisfies users but also attracts different types of participants.
Launchpad and Bridge: The Launchpad feature helps the platform attract attention from new projects, while the Bridge facilitates cross-chain transactions, allowing Cetus to broaden its user base and increase liquidity.
Reputable Investors: Cetus has attracted major investors such as KuCoin Ventures, Animoca Brands, Jump Crypto, and the Sui Foundation. These funds not only help Cetus develop financially but also lend credibility and access to a global blockchain ecosystem.
Low Transaction Fees: Compared to other DEXs in the Sui ecosystem, such as Turbos or Suiswap, Cetus offers lower transaction fees, especially with pairs that have fees as low as 0.25%.
CETUS Token Inflation Risk: With the token unlocking over a short period (3 years), there will be significant sell pressure for long-term investors.

Conclusion

Cetus Protocol is a promising DEX project built on the emerging Sui and Aptos blockchains, utilizing advanced technologies like AMM CLMM to optimize liquidity and reduce transaction costs for users. Backed by reputable investors, Cetus has strong growth potential and can provide a flexible and rewarding trading experience for the DeFi community. The CETUS and xCETUS tokens play key roles in the Cetus ecosystem, encouraging users to participate in liquidity provision, DAO governance, and benefit from farming programs. Despite facing competition and market challenges, Cetus is well-positioned with a solid foundation and growth opportunities, promising to become an important liquidity protocol on Sui and Aptos in the future.

This overview has provided you with insights about Cetus and the CETUS Token. If you have any questions, feel free to leave them in the comments, and we’ll get back to you right away!