Cetus initiates community vote: intends to fully compensate for $223 million of stolen assets
On May 28, Sui Ecological DEX Cetus announced that it would initiate a community governance vote to decide whether to use protocol funds and Sui Foundation loans to fully compensate for the $223 million of assets previously stolen due to smart contract vulnerabilities.
Event Review
Vulnerability Cause: The attacker used the open source code flaw of the CLMM (centralized liquidity market maker) smart contract to launch an attack
Market Impact: Some Sui Ecological Tokens plummeted by 90%, and CETUS tokens fell by 50% in a single day
Repair Progress: Cetus has patched the vulnerability and promised to initiate compensation regardless of the voting results
Compensation Plan
If the vote is passed, the compensation funds will come from:
Protocol cash reserves
Token library assets
Key loans provided by Sui Foundation
This incident once again highlights the security risks of DeFi, and Cetus's proactive compensation proposal may set a new standard of responsibility for the industry. The market is closely watching the voting results and subsequent implementation.
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