The Cetus Protocol (CETUS) is a decentralized exchange (DEX) and a concentrated liquidity protocol based on the Sui and Aptos blockchains. Its goal is to create a powerful and flexible underlying liquidity network to facilitate the trading of various assets.
Below is what you need to know about Cetus:
What it is:
Decentralized Exchange (DEX): Allows users to trade cryptocurrencies directly with each other without the need for a central intermediary.
Concentrated Liquidity Protocol: This feature allows liquidity providers (LP) to allocate their capital within specific price ranges, increasing capital efficiency and potentially generating higher returns. This differs from traditional DEX models, where liquidity is distributed across the entire price spectrum.
Multichain: Initially based on Sui and Aptos, with the aim of providing interoperability between these ecosystems.
Key features and concepts:
Concentrated Liquidity Market Maker (CLMM): This is the core technology that allows LPs to concentrate their liquidity. Liquidity as a Service: Cetus aims for developers to easily integrate their liquidity into their own applications.
Dual Token Model: Cetus uses two tokens:
CETUS: The native governance and utility token. It is used for governance decisions and can be obtained through liquidity mining.
