Cetus: Analysis of the Leading Centralized Liquidity DEX Protocol in the SUI Ecosystem

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Centralized Liquidity Protocols in the Sui and Aptos Ecosystems: An Analysis of Cetus

Cetus is a decentralized exchange and Liquidity protocol based on the Move ecosystem, employing a centralized liquidity algorithm similar to Uniswap V3 while integrating SUI ecosystem features, developing a series of innovative functions aimed at providing users with a high-quality trading experience and greater capital efficiency.

A Comprehensive Interpretation of the Centralized Liquidity Protocol Cetus on Sui & Aptos

Target Audience of DEX

The on-chain cryptocurrency trading market, although relatively small in scale, is growing rapidly. The main characteristics of this market are a large number of low liquidity, low market cap assets, and a continuous emergence of such assets, with strong demand for price discovery. Therefore, how to optimize price discovery to attract liquidity has become key to the prosperity of on-chain trading. From this perspective, DEX should primarily serve liquidity providers (LP).

The demand for LP varies in different trading scenarios. Mainstream asset LPs pursue more fee income and less impermanent loss, while long-tail asset LPs require more economical, controllable, and flexible market cap strategies. In the long run, the V3 model, which has higher capital efficiency, is the trend, but the market still needs solutions that can accommodate both demands. In the emerging SUI ecosystem, Cetus shows strong competitiveness.

Cetus: The First Centralized Liquidity Protocol DEX in the Move Ecosystem

Cetus has currently launched a complete product line including Swap, permissionless Liquidity pools, and cross-chain bridges.

A Comprehensive Interpretation of the Centralized Liquidity Protocol Cetus on Sui&Aptos

Main features:

  1. Concentrated Liquidity: Utilizes an algorithm similar to Uniswap V3, allowing LPs to create multiple positions in the same pool by setting different price ranges to implement custom strategies.

  2. Permissionless Pool Creation: Users can freely create liquidity pools, and project teams can directly launch new tokens on the platform, which helps attract early projects and quickly establish long-tail asset pricing power.

  3. Flexible Trading Fees: Offers four levels of fee options (0.01%, 0.05%, 0.25%, 1%) to meet the needs of different asset types.

  4. Position Auto Management: Supports range orders to achieve take-profit and limit-price functions, and can be integrated with third-party position managers to reduce the difficulty of liquidity management.

  5. High Composability: Other projects can easily access its Liquidity through the Cetus SDK.

  6. Secure Cross-Chain Bridge: Based on Wormhole technology, it supports secure cross-chain transactions for nearly 20 public chain assets.

  7. Innovative Token Economic Model: Adopting the xToken model, achieving protocol revenue sharing through CETUS and xCETUS holding mechanisms, ensuring the interests of the community and the protocol are aligned.

Cetus Team Background

The Cetus team has extensive experience in developing centralized liquidity market-making algorithms. As the commercial source code license for Uniswap V3 expires, the competitive focus of CLMM-type DEXs will shift towards operational capabilities. The Cetus team has excelled in product development, ecosystem expansion, and continuous operations, and is expected to take a leading position in the CLMM infrastructure within the SUI ecosystem.

A Comprehensive Explanation of the Centralized Liquidity Protocol Cetus on Sui&Aptos

Innovations in DeFi Brought by Concentrated Liquidity Protocols

  1. LP Automated Liquidity Management Protocol: Helps LPs automatically execute market making strategies to cope with market fluctuations.

  2. New Type of Gun Pool and Leveraged Mining: Under the CLMM algorithm, professional institutions can implement more refined customized strategies to provide high-value investment options for large users.

  3. Innovative Derivatives System: Develop derivatives that can hedge against LP market-making risks, protecting LP interests from malicious market manipulation.

Conclusion

The Cetus team demonstrates mature product development capabilities, strong ecosystem expansion abilities, and outstanding operational skills. They have a deep understanding of DEX products and markets. In the unique ecosystem of SUI, Cetus is expected to become an industry leader.

A Comprehensive Explanation of the Centralized Liquidity Protocol Cetus on Sui&Aptos

CETUS3.77%
SUI3.82%
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LiquidityWitchvip
· 4h ago
Tsk tsk, just another V3 copy.
View OriginalReply0
MetaverseHermitvip
· 4h ago
It's okay, let's first check the popularity.
View OriginalReply0
HalfIsEmptyvip
· 4h ago
cetus is really nice, I just like this trap.
View OriginalReply0
gaslight_gasfeezvip
· 4h ago
Let's first enter a position on a DEX for SUI and take a look.
View OriginalReply0
GateUser-a180694bvip
· 4h ago
Support the SUI ecosystem to keep going.
View OriginalReply0
SchrodingersPapervip
· 4h ago
Everyone is fomoing again, is V3 just Be Played for Suckers?
View OriginalReply0
GetRichLeekvip
· 4h ago
Wow, it feels like there are new highs for suckers again.
View OriginalReply0
OffchainWinnervip
· 4h ago
Follow the trend and play with centralized liquidity protocol, making a loss.
View OriginalReply0
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