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Sui Foundation's strategy for complete recovery after Cetus exploit involves...

Sui's progression towards complete user compensation sparks increased optimism within the community, signaling a generally favorable outlook among its members.

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Growing optimism evident among community members as Sui edges closer to complete user...
Growing optimism evident among community members as Sui edges closer to complete user reimbursement, according to a positive community outlook.

Sui Foundation's strategy for complete recovery after Cetus exploit involves...

In the wake of a significant $223 million exploit, the Cetus protocol is making strides towards recovery with the help of the Sui Foundation.

Sui Foundation Stabilizes the Situation

The Sui Foundation, in a proactive move to restore user trust, has extended a secured loan to facilitate full user reimbursement. This financial support, combined with Cetus' treasury, forms part of an extensive recovery plan aimed at addressing the fallout from the hack. Of significance, the foundation's aid specifically focuses on losses incurred from assets bridged off the Sui network.

The statement issued by the foundation noted, "Utilizing our cash and token treasuries, we are now in a position to fully cover the stolen assets currently off-chain if the locked funds are recovered through the upcoming community vote. This includes a critical loan from the Sui Foundation, enabling a 100% recovery for all affected users."

Community Reacts Positively

Reacting to the recovery efforts, an X user expressed optimism, stating, "finally some good news for memecoins on sui!" Samuel Xeus, Founder of The Nirvana Academy, echoed similar sentiments.

Community Vote Paves the Way for Recovery

As Cetus moves towards a full recovery, the final step now hinges on a community vote to unlock additional funds and ensure affected users are made whole. Launched on May 27, the vote aims to decide whether a protocol upgrade can proceed without requiring the hacker's signature to reclaim frozen assets.

If the proposal is approved, the retrieved funds will be transferred to a multisig wallet overseen by Cetus, OtterSec, and the Sui Foundation. SUI holders play a crucial role in the governance process by delegating their stake to validators casting votes of "yes," "no," or "abstain." The Foundation's stake is deliberately excluded to maintain impartiality, with over 50% of the total stake required to participate and approve the upgrade.

Sui Announces Security Measures

In addition to the recovery efforts, Sui has announced a $10 million security initiative, emphasizing its commitment to safeguarding the ecosystem and fostering greater collective responsibility through audits, bug bounty programs, and tooling improvements.

Cetus and Sui Price Action

Following the announcement of the Sui Foundation's recovery loan, CETUS experienced a notable price jump of 23.94%, climbing to $0.1602, while SUI also gained 6.55%, trading at $3.72 at press time. Despite this promising price action, deeper analysis revealed a lack of significant retail participation, suggesting that SUI's rally might be in its early stages. Insights from CryptoQuant's spot volume bubble map showed a decrease in trading volume across exchanges, but with overheated signals in the market traditionally associated with imminent corrections, there may be room for further upside before facing a pullback.

Nasdaq Files for U.S. Sui ETF, Indicating Growing Institutional Interest

Adding to the momentum, Nasdaq's recent filing for 21Shares to launch a spot Sui ETF in the U.S. signals growing institutional interest in the network. If approved by the SEC, this development could catalyze broader retail engagement and strengthen market confidence, potentially positioning Sui for long-term growth and resilience.

In conclusion, the ongoing recovery efforts, community vote, and institutional backing offer a glimmer of hope for the Cetus protocol and the Sui network, aiming to recover millions from the exploit and setting the stage for long-term growth.

  1. The Sui Foundation's aid, focusing on losses incurred from assets bridged off the Sui network, includes a loan that will completely cover the stolen assets if they are recovered through the community vote.
  2. Samuel Xeus, Founder of The Nirvana Academy, expressed optimism about the recovery efforts, stating that it's good news for memecoins on the Sui network.
  3. The community vote aims to decide whether a protocol upgrade can proceed without requiring the hacker's signature to reclaim frozen assets, with the retrieved funds being transferred to a multisig wallet if the proposal is approved.

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