Original author: Biteye core contributor Lucky

Original editor: Biteye core contributor Crush

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TL；TR：

Highlights:

1. Strong capital background;

2. The protocol products and models are reasonable, and the product experience is good;

3. Have a first-mover advantage;

4. DEX has a launchpad to increase token application scenarios;

risk:

1. The Sui ecosystem is currently in its early stages, which limits the development of DEX to a certain extent;

2. Subsequent competition for market share by competitors;

This article will introduce the project from the following three aspects:

1. Protocol introduction and token model;

2. Current business data;

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Protocol introduction

Cetus is a decentralized trading platform and centralized liquidity protocol focused on the Move ecosystem (including Sui and Aptos). It will serve as an important part of the underlying infrastructure of the Move ecosystem to meet the diverse needs of traders, liquidity providers, second-tier protocols, and various DeFi user groups.

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Features

Centralized liquidity: As a trading platform, Cetus has the characteristics of centralized liquidity similar to Uniswap V3. When providing liquidity, users can choose a range to maximize their capital utilization efficiency. At the same time, Cetus also provides users with four choose:

1) Conservative range;

2) Positive scope;

3) the whole interval;

4) Customize;

No permission required:Cetus allows other users and protocols to integrate Cetus at any time, whether it is to establish a new transaction pool or continue to build other LEGO products as an underlying protocol;

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token model

The current distribution of Cetus tokens is as follows:

1) 50% will be given to the community, mainly for the liquidity incentive plan

2) 20% will be given to the team and consultants, with a 12-month lock-up period, and will be unlocked linearly in the next 24 months after the lock-up ends.

3) 15% will be given to investors, with a lock-up period of 6 months, and will be released linearly in the next 12 months after the lock-up ends;

4) 15% is used for the provision of initial liquidity, incentives for long-term community activities and insurance funds.

IDO situation:2% of the total amount of Cetus tokens is used for IDO, the price is 1 $CETUS= 0.04 $SUI, calculated based on the current SUI price of $1.2, the $CETUS price of IDO is 0.048, and the initial circulation is based on the European Italian Announcement is 8%,We can conclude that the initial circulating market value is $384w, and the full market value is $4,800w.

At present, the IDO activity is still in progress, and the deadline is 18:00 on May 10. OKX, as an investor, will list $CETUS as soon as the IDO ends, which is one of the reasons for the hot IDO this time.

xCETUS governance incentive model:

In order to better promote the governance and development of the protocol, Cetus has designed the token mechanism of $CETUS and $xCETUS.

The features are as follows:

1. CETUS can be converted into xCETUS at a ratio of 1: 1 at any time;

2. The conversion ratio of xCETUS to CETUS varies from 1: 0.5 to 1: 1 according to the lock-up period;

3. A higher xCETUS balance represents a higher voting right;

4. The xCETUS balance will be used to calculate the weight of purchase quota in Launchpool in the future;

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Current business data

As of the morning of May 10, the TVL of Cetus was $16, 083, 382, ​​and the trading volume in the past 24 hours was $6, 573, 690. Its main TVL is concentrated in USDT-USDC, and the APR is 24.64%.

The picture below shows the current APR status of each pool on Cetus. At present, Cetus has certain additional Bonus incentives for some pools, so the APR income in the pool is fee income + Bonus incentives, so the current APR of each pool is at a relatively high level. level.

(Bonus situation: USDT-USDC and SUI-USDC pools have daily liquidity incentives of 8,000 USDC; WETH-USDC pools have daily liquidity incentives of 4,000 USDC)

From the perspective of transaction data, the daily transaction volume of Cetus in the past six days has been above 500w, the total number of transactions has reached 81,648, and the total number of interactive accounts has reached 21,790.

(It should be noted that this business data is driven by certain IDO activities, and some accounts are only subscription quota accounts, not transaction accounts;)

At the same time, we can see from the TVL changes of DefiLlama that its TVL reached a peak of $3 kw on 5.6-5.8, and then fell back to the range of $1.6-2 kw.

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Prospects and Prospects

Judging from the current protocol data connected to DeFiLlama, Cetus currently has the first-mover advantage in the Sui ecosystem (mainnet launch + IDO quick start), and its TVL ranks first in the ecosystem.

However, due to its short launch time and the fact that there are not many protocols for issuing coins in the entire SUI ecosystem, there will be certain restrictions on the increase in the transaction volume of this DEX in the next period of time.

Only with the development of the SUI ecology, the overall space of the DEX track will be opened, so in essence, the development of the protocol is closely related to the overall development of the SUI ecology, and the SUI ecology is still in its early stage.

Secondly, its competitors on the same track such as Turbos Finance, Suiswap, and MOVEX will also launch the main network one after another, and Cetus will usher in some competition by then.

From the perspective of its token model, Cetus will use 50% of its tokens to encourage liquidity mining to continue to develop and maintain its status. At the same time, it will also list other protocol tokens through Launchpad to give $CETUS tokens Coin empowerment, a two-pronged approach to ensure the steady development of its protocol.

In any case, with its brilliant performance and strong management background, the project may be worthy of long-term attention.