Cetus Protocol — A Pioneer Liquidity Provider

What is Cetus Protocol?

Cetus is a Dex and liquidity protocol that aims to provide capital efficiency by allowing users to set custom price ranges, the term used here is “capital efficiency”, when adding liquidity to a pool. Cetus was first deployed on Aptos and later will be on Sui when it’s mainnet launches.

What does Cetus provide?

Cetus is very similar to the DEXs we are used to on Ethereum, Solana and other popular chains. Cetus provides swapping functionality, liquidity pools and a bridge that is powered by Wormhole.

How to perform a swap on Cetus?

First thing you are going to do is connect a Aptos or Sui compatible wallet. Cetus is compatible with a wide range of wallets as you can see below with Aptos.

And here we can see the list for Sui.

As a side note, the Martian wallet supports both Aptos and Sui, so it is a widely popular choice.

Next we will navigate to the swapping section of Cetus and enter the coin to swap and the coin to receive.

We can also set the slippage tolerance by pressing the button next to the number and percentage sign. Do take note that slippage tolerance can be set low such as 0.5–1% if a suitable amount of liquidity is provided in the pool. However, if there is not suitable liquidity, users often have to set the tolerance high to 5–10% in order for a swap to succeed. This can be frustrating at times for new users when they continuously receives errors when trying to swap and is unsure of the problem.

Last step of the swap is to confirm and approve the transaction in the wallet.

How to add Liquidity on Cetus

This is the main functionality of Cetus and where all the magic happens in terms of concentrated liquidity. We will start by navigating to the pools section of Cetus and choose the desired pair and liquidity weighting.

When entering in the desired amount of liquidity for each coin, we notice that the split does not have to be 50/50 which is the case for many traditional pools. For example if I would rather use less of my Aptos and more of my USDC for stabilty, I could choose a 25/75 split. In order to achieve this custom price range, a user will select the custom tab and increase or decrease the range on each pair. We can then see how the weight of the liquidity pair changes.

How to remove liquidity

We will only be able to see the remove button if we actually have some liquidity provided.

In the case that we do, press the remove button and select the desired amount to withdraw.

Also notice that we can set the slippage tolerance for not only swapping, but also for adding and removing liquidity.

Conclusion

Cetus Protocol is a pioneer in the AMM field and aims to provide the best experience and capital efficiency for their users. We can also see this in the fact they they are rolling out on the two newest and most promising blockchains, Aptos and Sui.

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