The decentralized exchange, Cetus Protocol, has relaunched following a significant $223 million exploit. The protocol announced its post-relaunch strategy in a June 8 blog post outlining measures to enhance security, upgrade monitoring systems, and transition towards full open-source contributions. A new white hat bounty program supports community-driven security efforts. The team has replenished affected CLMM pools with assets recovered from the exploit, a $30 million loan from the Sui Foundation, and treasury funds, enabling liquidity providers to regain access to their positions with recovery rates ranging from 85% to 99%, depending on pool damage extent. To compensate for unrecovered losses, Cetus has allocated 15% of its native CETUS token supply to affected users, with immediate claimable portion of 5% and the remaining 10% unlocked monthly until June 2024. This allocation introduces no new inflation as it repurposes unvested team tokens within the existing supply cap. Compensation claims will be tied to LP position NFTs, which remain valid certificates for CETUS redemption, even after liquidity is withdrawn. The protocol has also completed new security audits covering all code patches, contract upgrades, and the compensation contract. Further rounds of audits and real-time threat detection upgrades are planned to bolster resilience. Cetus Protocol was exploited on May 22nd when an attacker manipulated its liquidity pool pricing through a third-party code library flaw. The team froze operations immediately following and collaborated with Sui validators to recover assets, and an on-chain governance vote approved the transfer of $162 million in frozen funds for recovery. The Sui Foundation also provided a dedicated USDC loan to support off-chain losses. Legal proceedings are ongoing, with law enforcement agencies investigating the attacker’s actions, which include attempts to launder assets. However, most movements remain traceable. The team is confident in recovering the remaining stolen funds and arrests. Should additional funds be recovered during the compensation period, users can redeem CETUS for USDC. Once the program concludes, any remaining funds will be allocated to token buybacks and deposited into the community treasury.