Cetus Protocol (CETUS)

Use Cases of Cetus Protocol

• Decentralized Exchange (DEX) and Liquidity Provision: Cetus Protocol is a decentralized exchange built on the Sui and Aptos blockchains. It allows users to trade digital assets and provide liquidity efficiently using a concentrated liquidity market maker (CLMM) model. This model lets liquidity providers focus their assets within specific price ranges to maximize returns and reduce slippage.

• Advanced Trading Strategies: Users can create complex trading strategies such as swaps, range orders, and limit orders, similar to those on centralized exchanges. This flexibility supports a wide variety of trading approaches.

• Liquidity Mining and Rewards: Cetus uses a dual-token system (CETUS and xCETUS) to incentivize active participation. Users can stake tokens to earn protocol fees and rewards, and participate in governance decisions.

• Permissionless and Programmable Protocol: The platform is permissionless, meaning anyone can create trading pools or build applications using Cetus’s protocols without restrictions. Developers can integrate Cetus’s liquidity into their products, such as liquidity vaults, derivatives, and leveraged farming, using the Cetus SDK.

• Liquidity as a Service: Cetus emphasizes ease of integration for developers and applications, enabling them to access liquidity and build new DeFi products quickly.

• Cross-Chain Support: Cetus offers bridging interfaces to migrate assets across multiple blockchains, expanding its usability beyond Sui and Aptos.

• Governance: CETUS token holders can vote on protocol upgrades, fees, and incentives, helping shape the future of the platform.

In summary, Cetus Protocol provides a flexible, efficient, and developer-friendly platform for trading, liquidity provision, and building DeFi applications on Move-based blockchains.

Advantages

• Cetus Protocol is a pioneer decentralized exchange (DEX) and concentrated liquidity protocol built on the Sui and Aptos blockchains, offering a powerful and flexible liquidity network.
• It uses a Concentrated Liquidity Market Maker (CLMM) model, allowing liquidity providers to allocate assets within custom price ranges, improving capital efficiency and reducing slippage.
• The protocol supports complex trading strategies similar to centralized exchanges, including limit orders and range orders.
• Cetus operates on a permissionless standard, enabling users and applications to freely use its protocols.
• It has a double-token model (CETUS and xCETUS) that rewards active participants with governance rights and a share of protocol revenue.
• The platform emphasizes composability and developer-friendly tools, allowing easy integration and innovation.
• Cetus has achieved milestones like smart contract audits and partnerships with notable investors.
• The community sentiment on social media is mostly bullish, indicating positive user interest.

Disadvantages

• Cetus Protocol has experienced a major security breach, with a hack resulting in losses of over $200 million.
• It received a low security and regulatory compliance score (0/10) in some evaluations.
• The token price has recently underperformed compared to the overall crypto market and similar exchange-based tokens.
• Cetus does not support leveraged trading.
• Users should be aware of the risks related to smart contract vulnerabilities and market fluctuations.

Founders of Cetus Protocol

The founder of Cetus Protocol is Henry Du. He leads the development of this decentralized exchange and concentrated liquidity protocol built on the Sui and Aptos blockchains. Henry Du is recognized as a co-founder and key leader in the project, which focuses on creating a flexible liquidity network for DeFi users.

Investors in Cetus Protocol

The investors in Cetus Protocol include a mix of well-known venture capital firms and crypto-focused investment groups. Key investors are KuCoin Ventures, Coin98 Ventures, OKX Blockdream Ventures, Animoca Brands, Jump Crypto, NGC Ventures, Adverse, Comma3 Ventures, IDG Capital, AC Capital, and Leland Ventures. Additionally, Assembly Partners, ViaBTC Capital, Adaverse, and Sui Foundation have also invested in the project. These investors participated mainly in the Seed funding round held on May 2, 2023.

Halal Status of Cetus Protocol

Based on expert Shariah analysis, Cetus Protocol is considered halal for Islamic investment. This conclusion comes from comprehensive Islamic screening that evaluates the protocol's features and operations according to Islamic principles.