“Participate in self-management and become a shareholder of Cetus”
The hottest coin in early 2024 is undoubtedly 'SUI', which has surged over 4 times in just two months and is hailed as the next-generation Solana killer. SUI is built on a Layer 1 blockchain platform focusing on efficient scalability and the development of decentralized applications (DApps), using a special programming language called 'Move', which has parallel transaction processing capabilities, thereby enhancing speed and security.
The Cetus Protocol, built on the SUI ecosystem, is a DEX using concentrated liquidity on the Sui and Aptos blockchains, improving the trading efficiency and liquidity management of DeFi users through innovative features and models.
The mission is to create a robust and flexible underlying liquidity network, making trading easier for any user and asset. Unlike traditional Automated Market Maker (AMM) protocols, Cetus introduces the concept of concentrated liquidity. This allows liquidity providers to strategically allocate their assets within customized price ranges.
This innovation not only significantly reduces the underutilization of liquidity in traditional AMM pools but also improves trading efficiency, providing liquidity providers with higher fee returns. Furthermore, Cetus is committed to offering the best trading experience and outstanding liquidity efficiency for DeFi users by establishing a centralized liquidity protocol and a series of interoperable feature modules.
The liquidity of the entire Sui ecosystem is now within reach. In addition to utilizing the native liquidity on the Cetus protocol, the Cetus Plus aggregator seamlessly integrates liquidity from all major sources on the Sui network, including DeepBook, Kriya, FlowX, Aftermath, and Turbos. As the Sui ecosystem continues to develop, more valuable liquidity venues will be integrated in the future.
Cetus Features
Concentrated liquidity: As a trading platform, Cetus has similar functions to Uniswap V3, featuring a concentrated liquidity model. Users can choose specific price ranges when providing liquidity to maximize capital efficiency. Cetus offers users four options for setting liquidity ranges:
1. Conservative range: Suitable for users who prefer lower risk and stable returns.
2. Active range: Suitable for users seeking higher returns but with potentially greater risks.
3. Full range: Covers the entire price range, accommodating a wide market.
4. Custom range: Users can define their specific range based on their strategies and risk tolerance.
Cetus Token Model
Currently, the token distribution of Cetus is as follows:
1. 50% allocated to the community: Primarily used for liquidity incentive programs.
2. 20% for the team and advisors: with a 12-month lock-up period, followed by linear vesting over the next 24 months.
3. 15% for investors: 6 months lock-up period, followed by linear release over the next 12 months.
4. 15% allocated for initial liquidity, long-term community incentives, and insurance funds.
xCETUS Governance Incentive Model
To better facilitate protocol governance and development, Cetus has designed a token mechanism for $CETUS and $xCETUS. CETUS and xCETUS can be converted into each other, but the processes and rules vary depending on the conversion direction.
1. Conversion from CETUS to xCETUS CETUS can be converted to xCETUS at any time immediately. The conversion ratio is 1:1.
2. The process of exchanging xCETUS back to CETUS involves vesting. The duration of the vesting period is chosen by the user. The conversion ratio will increase proportionally based on the exercise period chosen by the user:
● The shortest redemption period of 15 days offers a 1:0.5 conversion ratio.
● The longest exercise period of 180 days offers a 1:1 conversion ratio.
● Users will not receive CETUS until the redemption vesting period is completely over.
● Liquidity miners who lock xCETUS can earn additional rewards, with multipliers ranging from 1.25x to 2.5x.
If the vesting period chosen by the user is shorter than the maximum allowed period (redemption rate <1:1), any unclaimed remaining CETUS tokens will be forfeited upon the end of the vesting period and completion of the redemption process. The forfeited portion will be transferred to the ecosystem treasury for integrating insurance funds and long-term community incentives of the protocol.
3. Cancel redemption
Before the exercise period of the redemption request ends, users can freely cancel the redemption. In this case, the user will retrieve the full amount of the xCETUS they redeemed but will not get back CETUS.
How to join xCETUS staking
Start staking (convert CETUS to xCETUS)
1. Connect your wallet on the Cetus Web application: https://app.cetus.zone/, and then navigate to the xCETUS dashboard page.
2. Click 'Connect' at the top right of the page to connect your wallet. You can use OKX Wallet; apply for OKX Wallet through the video.
3. On the conversion panel to the right of xCETUS, switch to 'Get xCETUS' and enter the amount of CETUS you wish to convert to xCETUS. Click the 'Convert' button to continue.
4. A pop-up window will inform you of the redemption policy.
5. Once CETUS is converted to xCETUS, you have joined xCETUS staking. Staking rewards will be received weekly. You can see the countdown to the next reward distribution on the staking page. After each distribution, you can click the 'Claim' button to collect your rewards.
6. One of the new updates for xCETUS staking is that staking rewards are now distributed in three asset forms, including SUI, CETUS, and USDC. This can provide users with a mixed staking yield combination. All rewards are supported by organic transaction fees generated by the Cetus protocol. As trading activity on Sui grows, all stakers can earn more returns.
7. In addition to earning staking rewards, your xCETUS balance will grant you a range of rights and privileges regarding Cetus, such as Launchpad participation privileges, potential airdrops from Cetus partners, and more importantly, governance voting rights and potential shareholder status with profit-sharing.
Exchange from xCETUS to CETUS
8. If you want to redeem your CETUS, you can start the redemption process at any time. Just switch to 'Redeem CETUS' on the page.
9. Please note that your redemption will have a vesting period, ranging from 15 days to 180 days, depending on your choice. Different vesting periods have different redemption ratios. The redemption ratio increases in proportion to the exercise period chosen by the user. A maximum exercise period of 180 days offers a 1:1 redemption ratio, while the shortest (15 days) offers a 1:0.5 redemption ratio.
10. Once you confirm the vesting period and enter the amount of xCETUS, you will see the amount of CETUS you can obtain after the vesting period ends. If you confirm, please click 'Redeem'.
11. After confirming your redemption request, a record of the unstaking will appear on your page. You can claim your CETUS after the vesting period ends. Additionally, if you decide to reactivate your xCETUS, you can 'cancel' your redemption at any time before the vesting ends.
