Cetus Protocol: Driving Sui’s DEX Revolution with $150 Million TVL

Sui’s ascent as a layer-1 blockchain, boasting a $13 billion market cap and $3.72 SUI price, has reshaped the DeFi landscape in 2025. At the heart of this transformation lies Cetus Protocol, a decentralized exchange (DEX) that has solidified its position as Sui’s leading liquidity hub with $150 million in total value locked (TVL). Built on Sui’s high-throughput architecture, which delivers 297,000 TPS and $0.0002 fees, Cetus leverages the concentrated liquidity market maker (CLMM) model to offer unmatched trading efficiency. Its integration with DeepBook, Sui’s native on-chain order book, and innovative features like range orders and intent-based trading empower traders and liquidity providers (LPs) alike. With $5.44 billion in 30-day trading volume, Cetus is a cornerstone of Sui’s $2.2 billion DeFi ecosystem, driving adoption through user-centric design and robust partnerships.

The CLMM Model and Ecosystem Synergy

As the Sui ecosystem coins list expands with projects like Scallop and NAVI, Cetus stands out for its innovative approach to liquidity provision. Its CLMM model, inspired by Uniswap V3, allows LPs to concentrate liquidity within specific price ranges, maximizing capital efficiency and fee earnings. Unlike traditional AMMs, which spread liquidity across all prices, Cetus’s LPs earned 7-15% APRs in Q2 2025, with SUI/USDC pools generating $194 million in daily volume. The protocol’s permissionless design enables developers to integrate Cetus’s liquidity via SDKs, fostering composability across 54+ DeFi dApps. Cetus’s Super Aggregator pulls liquidity from DeepBook and Kriya, ensuring optimal pricing for traders. Posts on X praise Cetus’s seamless UI and community-driven governance, with 93,118,128 SUI committed during its NAVI IDO, underscoring its role as a launchpad powerhouse.

DeepBook Integration and Trading Efficiency

Cetus’s integration with DeepBook, Sui’s on-chain CLOB, has redefined trading efficiency in 2025. DeepBook’s v3.1 upgrade in April 2025, processing 1.1 million testnet trades, complements Cetus’s CLMM pools by aggregating order book liquidity, reducing slippage for whale traders. This synergy enables Cetus to handle $36.4 million in daily volume with bid-ask spreads as low as 0.01%. The protocol’s intent-based trading module supports advanced strategies like dollar-cost averaging (DCA) and on-chain limit orders, attracting institutional players like Kairon Labs. Cetus’s partnership with MSafe adds multisig wallet support, enhancing security for high-value transactions. By leveraging Sui’s 390ms finality, Cetus ensures real-time trade execution, making it a go-to platform for both retail and institutional users.

Liquidity Provision and User Incentives

Cetus’s permissionless pools and position NFTs empower LPs to customize strategies, earning higher fees during active price ranges. In Q2 2025, Cetus distributed $3 million in CETUS and xCETUS rewards via liquidity mining and loyalty programs, with xCETUS holders governing pool parameters. The protocol’s dual-token model—CETUS for transactions and xCETUS for staking—ensures sustainable incentives, with 821 million CETUS circulating ($111.76 million market cap). To maximize LP returns and trader benefits, Cetus employs:

• Range Orders: LPs set precise price ranges to optimize fee earnings.
• Position NFTs: Represent LP stakes, enabling flexible position management.
• Liquidity Mining: Rewards scale with transaction fees, favoring active LPs.
• Super Aggregator: Sources liquidity from DeepBook for minimal slippage.
• Cross-Chain Swaps: Wormhole integration enables asset transfers across 20+ chains.

Resilience Amid Challenges

Cetus faced a setback in May 2025 with a $223 million exploit due to a pricing mechanism flaw, dropping its TVL from $284 million to $75 million. Swift action, including a Sui Foundation loan and on-chain vote, recovered $162 million, restoring pools to 85-99% of pre-exploit levels by June. Enhanced audits by Zellic and Blockaid, alongside real-time monitoring, have since bolstered security. Regulatory pressures, such as MiCA’s licensing requirements and SEC scrutiny of SUI, demand KYC/AML integration, which Cetus addresses via partnerships with LayerZero. Despite these hurdles, Cetus’s $150 million TVL and $13 billion cumulative volume reflect robust recovery and user trust, positioning it as Sui’s top DEX.

Conclusion

Cetus Protocol’s $150 million TVL and $5.44 billion monthly volume cement its role as Sui’s leading DEX in 2025. Its CLMM model, DeepBook integration, and intent-based trading deliver unparalleled efficiency, with $0.0002 fees and 297,000 TPS enabling seamless swaps. Despite a $223 million exploit, Cetus’s rapid recovery, backed by Sui’s community and $162 million in restored funds, showcases resilience. Position NFTs, range orders, and cross-chain capabilities via Wormhole drive LP and trader engagement, while partnerships with MSafe and LayerZero enhance security and interoperability. As Sui’s $2.2 billion DeFi ecosystem grows, Cetus’s innovative liquidity solutions and community governance position it to lead the Web3 trading revolution.