Opportunities in Crisis: After the Cetus Theft, Who Will Become the First DEX in the Sui Ecosystem?
1. The first question: Does the Sui ecosystem still have a chance?
The largest DEX in the Sui ecosystem—Cetus—has experienced a theft incident, but this security issue is not due to the Sui public chain itself, rather it is due to a vulnerability in Cetus's smart contract (calculation precision issue).
On the other hand, the Sui Foundation reacted swiftly, working with validators to freeze funds on the hacker's address through the 'ignore transaction' mechanism and plans to further recover assets transferred across chains, which resulted in no substantial loss of funds.
However, the TVL in the Sui ecosystem has recently rebounded, indicating that some of Cetus's funds have flowed to other protocols.
People will vote with their feet; overall, the market's attitude towards the Cetus theft incident can be seen: this is a singular project security incident, and funds still have confidence in the Sui ecosystem.
From another perspective, a gap in the DEX track has emerged in the Sui ecosystem, and other competitors naturally have a great opportunity to seize the chance in a crisis, inheriting the liquidity of the Sui ecosystem.
Behind every crisis is an opportunity; chaos is a ladder of ascent.
2. Who will become the first DEX in the Sui ecosystem?
Currently, the DEX with the most momentum in the Sui ecosystem is Momentum. @MMTFinance
Momentum's TVL has reached $60 million, and it has grown rapidly after the Cetus incident, indicating that it has attracted some funds that flowed out of Cetus.
The current focus of the community on Sui ecosystem DEXs is actually on security.
Momentum excels in security:
(1) Five-layer security architecture: Momentum employs a five-layer security mechanism of multi-signature, smart contract testing, real-time monitoring, formal verification, and external auditing, significantly reducing the risk of hacker attacks.
(2) Rapid response capability: After the Cetus incident, Momentum quickly suspended withdrawals and self-audited its code to ensure fund security, winning community recognition for its real-time crisis handling ability.
(3) Transparency: Momentum publicly shares its code audit reports and collaborates with the Sui Foundation for security upgrades, enhancing user trust.
In addition to its own security mechanisms, Momentum has received strong endorsements: investors include the Sui Foundation, Coinbase, and other institutions, raising $10 million, which further enhances its competitiveness in the ecosystem.
This is why, after the Cetus theft incident, Momentum was the first DEX to resume operations and inherited a large amount of liquidity.
3. To summarize
The technical foundation of Momentum and the support of the Sui Foundation make it very likely to dominate in the mid to short term.
So what opportunities are there for ordinary users during this crisis?
To capture market share, Momentum has launched the latest incentives:
- SUI-USDC: 196% annualized return
- USDC-suiUSDT: 20% annualized return
- All liquidity pools have 3x points incentives
It can be said that currently, the Momentum platform offers the highest incentives in the Sui ecosystem, making it very worthwhile for DeFi mining users to take advantage of these post-crisis benefits.
Wherever the funds are, there are opportunities; we can continue to pay attention to the Sui ecosystem.
