Sui blockchain is one of the most popular projects of recent times. The CETUS protocol working on it is also among the most promising Decentralized Exchanges. However, the hack that happened yesterday really left a mark on the Sui ecosystem. To explain it better, we can give an example as follows; CETUS corresponds to Uniswap on Ethereum. The hack that happened in this protocol, which has a very serious liquidity volume on the SUI network, caused permanent serious damage to the small coins in the entire ecosystem.
We need to consider that memecoins were seriously damaged here in particular. These memecoins, whose only liquidity pools were on CETUS, lost almost all of their value and experienced a historic collapse. After this hack, it is still not fully shared who it was and how the frozen assets will be distributed has not yet been decided. For now, it is being discussed whether liquidity should be reloaded through a single wallet or whether a distribution should be made in a way that will return people's money.
When you think about it, it makes sense for liquidity pools to be restored and people to get their money back according to their shares in the pool. However, we know that as soon as they get their money, the vast majority will start selling, causing the coins to experience "realized" damage. Project owners who predict this will most likely try to extend the process a little more and extend the time as long as it is in their favor.
SUI is still a very strong project and has a serious place in my portfolio. CETUS Although it has encountered a serious problem and caused unacceptable damage, I think this is only on the protocol and can be easily managed. I think Bluefin, Navi, Turbo, Scallop, and many other projects can easily attract liquidity and replace CETUS. Of course, this does not mean that CETUS will collapse. I think that they can gain people's trust by allocating more budget in addition to the incentive mechanism they have always done. In addition, they will most likely implement an incentive mechanism with distribution in order to prevent the losses that xCETUS stakers will experience this month.
The easiest way to get through this process is to give people back the money they lost. The people who will suffer the least damage here will most likely be those who invest in stablecoin pools. Unfortunately, the people who lose the most will be those who hold significant amounts of money in memecoin Pools. A later NFT distribution or a distribution as a thank you will help replace the lost Prestige.
I am still careful not to make any transactions on CETUS. Even if the last activity in your wallet was 10 days ago, and I need to make a transaction, I will continue to monitor remotely until the security vulnerability in CETUS is completely fixed. The fact that Validators take action on the SUI network and freeze the stolen liquidity is another topic to be discussed, but unfortunately, we have become quite accustomed to freezing transactions or rolling back chain movements in the form of roll-backs by compromising decentralization in the crypto ecosystem.
What do you think about the case of a hack on CETUS protocol?
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