FAQ

How to simply describe Cetus?

Cetus is a pioneer DEX and concentrated liquidity protocol built on Sui and Aptos. The mission of Cetus is building a powerful and flexible underlying liquidity network to make trading easier for any users and assets. It focuses on delivering the best trading experience and superior liquidity efficiency to DeFi users through the process of building its concentrated liquidity protocol and a series of affiliate interoperable functional modules.

What is concentrated liquidity?

Liquidity in a common AMM is distributed uniformly along the entire price curve (0, ∞). In comparison, concentrated liquidity is the liquidity allocated within a specified price range. A concentrated liquidity protocol like Cetus allows liquidity providers to contribute their liquidity within their custom price ranges.

Which blockchain is Cetus built on and why choose it?

Cetus currently supports Sui and Aptos.

Sui is a permissionless, PoS-powered Layer 1 blockchain that has been designed in an attempt to provide instant settlement and high throughput as well as empower a multitude of next-gen latency-sensitive decentralized applications. Its asset-oriented architecture differentiates it from most of the mainstream layer1 blockchains, which could create possibilities for a variety of new Web3 features.

Aptos is a newborn layer1 blockchain that is full of potential and ambitions. It jumps out of the box that EVM ecosystem has created and pursuits the new gen of blockchain network with superior scalability, speed and robustness. We can see the increasing enthusiasm and demand for this eco. Cetus will be an important part of Aptos's evergrowing infrastructure and collectively create values for all ecosystem participants in this process.

What major benefits can Cetus bring to this ecosystem?

Liquidity efficiency is the first thing that Cetus can redefine for this ecosystem, which is powered by its concentrated liquidity algorithm. Both liquidity providers and traders can benefit from this. By concentrating liquidity in an active price range, LPs can earn transaction fees more efficiently. Traders can enjoy low-slippage trading around the spot price during their swaps. In addition, developers can easily build their own products and tip into the most efficient liquidity source of Cetus by integrating with its openly-accessible smart contracts and SDKs.

What incentives can liquidity providers get on Cetus?

Through active participation in the protocol, liquidity providers can earn incentives in a few ways. First of all, the transaction fee is the primary earnings for most liquidity providers. One thing that is worth noting is that only a liquidity position that has an active price range (current price lies within its price range) is able to handle real-time transactions, thereby receiving transaction fees. Based on the basic fee earnings, some liquidity pools may provide additional liquidity mining rewards to give liquidity providers more incentives. The mining rewards for a liquidity provider depend on their position performance in generating transaction fees. Besides, there are also a couple of Loyalty Incentivization Programs on Cetus, like liquidity lockups and leaderboard campaigns, which allow those most active participants to earn extra rewards.

Does Cetus have a token?

Cetus adopted a double-token model, which includes CETUS and xCETUS (currently the TGE is yet to come). CETUS is the native protocol token of Cetus protocol. Users can earn it through liquidity mining on Cetus. xCETUS is a non-transferable escrowed governance token, corresponding to staked CETUS. Users can get xCETUS by directly converting CETUS tokens, or through participating/contributing to the protocol upon requirements. CETUS can be converted 1:1 to xCETUS at any time. xCETUS can be redeemed back to CETUS through vesting and the conversion ratio depends on the selected vesting duration.