What Is Cetus Protocol (CETUS)? How Does It Work?
What is Cetus Protocol (CETUS)?
Cetus Protocol is a decentralized exchange and concentrated liquidity protocol designed to facilitate trading between various assets. Unlike traditional automated market maker (AMM) protocols, Cetus introduces the concept of concentrated liquidity, allowing liquidity providers to strategically allocate their assets within custom price ranges. This innovation minimizes the underutilization of liquidity seen in conventional AMM pools, enhancing efficiency and maximizing fee generation for liquidity providers.
Cetus is developed on Sui and Aptos blockchains. Sui is a permissionless Proof-of-Stake Layer 1 blockchain that offers instant settlement and high throughput capabilities. Its asset-focused architecture opens doors to new possibilities for Web3 features, a distinguishing factor from mainstream Layer 1 blockchains. Aptos, on the other hand, is a new Layer 1 blockchain driven by aspirations for superior scalability, speed, and robustness. Cetus positions itself as a vital component within Aptos's growing infrastructure, contributing to the network's ambition to redefine the blockchain landscape.
How Cetus Protocol (CETUS) Works
Cetus's concentrated liquidity model revolutionizes the traditional AMM approach. Liquidity providers can create positions with custom price ranges, concentrating their assets where trading activity is most prominent. This targeted liquidity provision enhances efficiency, ensuring that a higher percentage of the provided liquidity is actively utilized. The protocol also employs the Concentrated Liquidity Matching Model (CLMM), enabling users to execute various complex trading strategies, similar to those seen in centralized exchanges.
Additionally, the protocol introduces Range Orders, a unique feature allowing liquidity providers to act as makers and simulate limit orders. This empowers users to execute advanced trading strategies, including take-profit and buy-limit orders. The Position NFT system adds a layer of ownership and authority to liquidity providers, granting them the ability to collect fees and earn liquidity mining rewards.
Besides, the protocol embraces the concept of "Liquidity As A Service," emphasizing easy integration for developers and applications. Through Cetus's SDK, developers can seamlessly access the liquidity on Cetus to build innovative products such as liquidity vaults, derivatives, and leveraged farming. This flexibility and interoperability empower a wide range of decentralized applications to thrive within the Cetus ecosystem.
Furthermore, Cetus offers the Cetus Bridging Interface with Wormhole SDK integrated, which acts as a cross-chain bridge, enabling users to migrate their assets across different blockchain networks easily. This product extends Cetus’ support to more than 20 blockchain networks, including Ethereum, BSC, Polygon, Solana, and others.
CETUS Goes Live on Bitget
At the heart of the protocol is the governance and utility token, CETUS. Users can acquire CETUS through liquidity mining on Cetus Protocol, ensuring a fair and distributed allocation. Designed for seamless payment and settlement within the Cetus ecosystem, CETUS eliminates the need for intermediaries, ensuring secure, peer-to-peer transactions.
Moreover, CETUS serves as an economic incentive, rewarding users for active participation and contribution to the Cetus ecosystem. Its distribution model encourages fair compensation, creating a dynamic and mutually beneficial system.
How To Trade CETUS on Bitget
Step 1: Go to CETUSUSDT spot trading page
Step 2: Enter the amount and the type of order, then click Buy/Sell.
For detailed instructions on how to spot trade in Bitget, please read The Uncensored Guide To Bitget Spot Trading.
The future of the Cetus Protocol looks promising, driven by its commitment to innovation, interoperability, and user-centric design. The concentrated liquidity model, coupled with the unique features like Range Orders and Position NFTs, positions Cetus as a frontrunner in shaping the future of decentralized finance. By building on Sui and Aptos, Cetus ensures a robust foundation for continued growth and development.
Trade CETUS now on Bitget!
Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
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