100% compensation Restart LP pool within 24 hours Cetus is making every effort to rebuild and firmly restore confidence Last night, as a community representative, I was invited to attend the first Chinese AMA initiated by @ TechFlowPost and participated by the @ CetuSProtocol team. During this 100 minute in-depth communication, @ henrybuild, on behalf of the team, responded candidly and systematically to multiple key questions from numerous guests How did the event happen? How to fill the funding gap? How to compensate for user assets? How can security be strengthened? Where is governance heading? ············· Throughout the AMA, one word runs through: 'Apologize'. From 'sorry' to 'we were wrong', from 'we take responsibility' to 'we will not evade', the team's attitude can be said to be sincere, candid, and without any avoidance. Simply put, the attitude of this AMA can be summarized in one sentence as a public commitment of not avoiding, not throwing the blame, and not letting it slip. As a community representative, I must say that I am very pleased with this positive response and proactive attitude of admitting mistakes. But for me, what really matters is never how sincere the emotions are expressed, but how the problem is solved··· I only care about two questions: 👉 How to compensate? What kind of compensation? Can you afford to compensate? After compensating, is there still a future? 👉 Is Cetus providing a safety net for users, and can the Sui ecosystem still hold up? That's the answer I care more about. So my first question is: Is the morale of the team still good? Is there any internal shaking? After this incident, will you consider giving up, transforming, or continuing to carry on? After all, in the cryptocurrency industry, technical mistakes can be fixed, but if confidence collapses, it can no longer be supported. Cetus gave a very positive answer: don't run away, don't lie flat, continue to believe in Sui, and also believe that he can get through it. Through the guests' follow-up and Henry's response, I gradually felt that Cetus was already building a clear and executable crisis management framework: Facing the problem → Clarifying the path → Formulating a plan → Refining implementation. The most touching sentence for me is: We will use all the tokens, protocol revenue, and cash reserves held by the team to compensate users. We will compensate users for everything we can and put them first So I have specially sorted out the following core contents for everyone's reference: 📍 Summary of Five Points for Compensation Arrangements 🌱 one ️⃣： Compensation ratio: 85% to 95% of assets can be directly compensated The first stage of compensation covers the vast majority of users; Due to some funds being transferred across chains, it is currently impossible to achieve 100% one-time compensation; The portion that cannot be fully compensated in one go will be gradually supplemented 100% through methods such as recovery, agreement revenue, and continuous operation; two ️⃣： Compensation target and calculation method: All users who participated in LP before the incident; Unified compensation standards regardless of address, identity, region, or participation channel; All compensation amounts will be calculated based on the TVL snapshot ratio at the time of the incident (it seems to be my understanding). three ️⃣： Compensation method: Mixed distribution of multiple assets SUI/USDC/USDT+CETUS mixed compensation; CETUS comes entirely from the team's 100% self owned shares, including future unlocked portions; Some compensation assets may have lock up or installment release mechanisms (details not mentioned); Priority will be given to compensating users with clear assets, with initial compensation covering the majority of users, while the rest will be gradually executed according to the rhythm; All compensation will not issue new coins or introduce inflationary assets; The project party is expected to synchronize the progress of compensation with operational strategies such as protocol restart; four ️⃣、 Source of compensation funds: 100% tokens and loans from the team The 100% CETUS tokens held by the team (including future unlocked portions) will be used entirely for compensation; • Operating cash reserves: specific amount not disclosed; Future revenue of the agreement: historical monthly average of approximately 1.5M (annualized 18M); Sui Foundation's loan support (not mentioned, estimated to be around 30 million), but needs to be repaid. five ️⃣、 The impact of compensation: XCETUS users retain basic rights, but interest will be extremely limited until debt repayment is made; Due to the inclusion of CETUS in the compensation, there is a certain risk of token selling pressure in the short term; The project party will mitigate market impact through income adjustment and negotiated buybacks; The governance mechanism will be restructured, and CETUS incentives will not be added for the time being. 💬 My observation and judgment To be honest, what Cetus is facing is not a question of whether or not to pay, whether or not he can afford to pay, but knowing the huge cost, he must grit his teeth and continue to pay. This is not an option, it's a lifeline. If this step is not taken, there is no qualification to talk about the future in the future. The team has already taken out everything they can: 100% self owned tokens, all protocol income, cash reserves, and even loan support from the Sui Foundation. The team did not hesitate to invest all available resources, which was not just a capital loss, but more like a 'trust redemption'. Because they know in their hearts that if Cetus collapses, Sui's entire DeFi flywheel will come to a standstill, and Sui's DeFi may have to start over from scratch. But it is precisely because of this "pay to the end, carry to the end" attitude that I have begun to re-examine: supporting a project is not because it is perfect, but because it dares to take responsibility, it chooses to take on the most difficult times, without evading, throwing the blame, or failing. It is worth believing again. Of course, I am not blindly optimistic. CETUS will face selling pressure, xCETUS earnings will significantly decrease and be marginalized, TVL will definitely fluctuate in the short term, and governance mechanisms need to be rebuilt. But the key is that it is still alive, still working hard to repay debts, trying to repair. This is very important. And in fact, observant people can notice that Cetus is no longer just a simple DEX, but more like an indispensable "system level infrastructure protocol" in the Sui ecosystem. Those familiar with me know the importance of my commonly used term 'infrastructure agreement'. In Sui's entire DeFi architecture, its position is really crucial: Before the incident, Cetus held the top protocol in the Sui ecosystem, accounting for 80% of the trading volume; → is the default liquidity entry point for the vast majority of protocols; → It is the main battlefield for LP market making. So when you say it's' too big to collapse ', it's not an exaggeration at all. In other words, if Cetus falls, Sui's DeFi will be disrupted. This is not a viewpoint, but a structural fact. In my opinion, from the series of actions taken by the Sui Foundation, it can be seen that three signals have actually been released: 1. Core infrastructure cannot fail, this is the ecological bottom line. 2. Cetus has been designated as the 'priority object for ecological support' by default. Since we have reached the bottom, the resources, traffic, and ecological cooperation projects in the future will be more inclined towards Cetus. 3. Sui takes advantage of the situation to build a public chain image with the ability to provide credit support. Once problems arise, it is willing and capable of intervening. Setting aside the topic of decentralization, it is a strong bonus for institutions and developers. I don't know if Cetus can go further, but I do know that there are not many people in Web3 who are willing to take responsibility, be willing to lose money, and be willing to bear the burden. I sincerely hope that everything can be repaired quickly and the funds can be recovered.