Code Vulnerability in Cetus DEX’s System Identified

SlowMist

SlowMist confirmed that the exploit resulted from a calculation precision bug in Cetus DEX’s code. Losses are estimated between $230 million and $260 million, leading to major asset disruptions, including a steep liquidity drop.

Cetus Protocol

Cetus Protocol and SlowMist are pivotal in addressing the vulnerability. In the words of a SlowMist’s representative, “Their team has conducted a preliminary analysis and suspects that the issue may be due to a vulnerability caused by a calculation precision problem.” The event has prompted Cetus to suspend smart contracts to mitigate further risks, as highlighted by SlowMist’s primary analysis.

The Exploit

The exploit caused a swift decrease in market performance, with significant impacts on the Cetus DEX platform’s liquidity. Native governance token CETUS fell sharply, adversely affecting trade across the platform’s pools. SlowMist Team shares critical security insights.

Financial Perspective

From a financial viewpoint, the incident has led to immediate liquidity concerns within affected pools and a strong community demand for enhanced security measures. The event highlights the critical importance of code precision and rigorous testing in blockchain applications.

Responsive Measures

In response, Cetus has taken decisive measures by suspending operations temporarily, reflecting a clear pattern of action compared to historical precedents. As detected, $60 million in USDC was shifted cross-chain to Ethereum, highlighting significant laundering risks. Notably, SlowMist’s commitment to thorough review underscores the continuing need for vigilant security standards across DEX platforms.