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The Latest on Sui DeFi
Recorded: May 28, 2025 Duration: 0:59:54Space Recording
Short Summary
In a recent discussion, key players in the SWE ecosystem addressed the aftermath of a significant hack on the CETUS exchange, highlighting swift recovery efforts, a $10 million security fund by the SWEET Foundation, and impressive growth metrics across various DeFi protocols. The community's resilience and collaborative spirit were emphasized as they work together to enhance security and foster innovation.
Full Transcription
Thank you. Thank you. Thank you. mic check gmgm everyone so glad to be here it's been quite a week in the sweet ecosystem
quite a week in crypto but i'm super excited for this space we have so many good people up here on
stage i'm not going to
waste everyone's time. I think we all know why we're here. We're here because we believe in SWE
and because the ecosystem is growing stronger every day. So I do want to intro some people
up here on stage. I'm going to throw it over to, of course, Adani first, who Nefari and many other
people call the boss. Adani, how's it going today? Doing really well. How's it going?
Quite well, quite well.
All right, folks. Good to see you all. And thank you all for joining this morning.
As you all know, we had an incident about a week ago that resulted in a hack on CETUS exchange.
hack on CETUS exchange. CETUS found the error in their code that resulted in the hack and as a
result has since patched that. What has happened since then was, you know, through the quick action
of the validators of the SWE network, they acted really quickly to block transactions from the
attacker's account. And that resulted in the quick recovery, well, at least the quick block of $162 million worth of assets.
This was a quick action they took to protect the best interests of the participants of the SWE network.
And a vote is ongoing right now that votes on as to whether these funds can be returned to those affected by the CETIS community.
Looking on my computer right now,
it looks like this governance vote,
about 67% voted yes, 0.3% voted no,
1.5% voted abstain, and about 31% are still to vote.
Remember, the vote is going to take another six days.
It's possible it closes, at this point,
it looks like the voting could close relatively quickly
because quorum's already reached. But ultimately, very positive outcome
for the ecosystem. So if I had to summarize, the hack occurred. Validators jumped in really quickly
to block the attacking account and was able to help in freezing $162 million. The community
unanimously has voted or is
voting as we speak to have those funds return into those attack. I think that's
a win, especially if you think about democracy. You have large performance of
a network participating in its governance measure to ensure that the network stays
strong but also ensures those who were affected are rapidly reimbursed their
funds. What has happened since then, right? What are we doing for greater security since then?
The SWEET Foundation announced
that it's going to spend an additional $10 million
over the next six months on additional security
for the network.
That goes into bug bounties, audits, form of verification
and other schemes to ensure that not only
that the SWEET protocol itself remains robust,
just to be clear, the SWE protocol itself was not hacked,
nor did it have an issue that caused the issue.
It was more to do with a particular protocol.
But usually, layer 1s rarely extend their bug bounties
to applications on top of them.
They normally just cover layer 1
because you have no way to know what people are going to write.
But the SWE Foundation has taken a step further, and it's probably in a first.
It's going to extend its bug bounty program to applications built on top of SWE,
and especially applications with $50 million above or above in TVL,
which means more people can look into code of applications on the SWE ecosystem
and be rewarded up to $ million dollars if they can find
critical bugs that affect those applications. So I think overall it's a net win for the ecosystem.
We've boosted, we've boosted security and at the same time that you've seen increase in growth in
DeFi incentives across the board. So DeFi protocols are seeing tremendous amount of growth even in the
wake of a very difficult week but theE community remains strong and really resilient.
And you know what they say, what doesn't kill you does make you stronger.
And it seems like this did not get anywhere near close to killing SWE, but collectively
we have become stronger as a community and as an ecosystem.
And Adani, you actually mentioned the DeFi protocols have stepped
up and we have some speakers up here on stage. If you guys just joined in, by the way, it would be
great to like, repost, drop a comment. There's going to be a lot of really good information in
this space. And the more that we share this around, the more people can learn about SWE,
the more that we can combat the misinformation. And generally speaking, education is always a
step in the right
direction. So really great recap, Adany. Thank you so much. And I'm going to bring up some of
these other guys. Just do a quick mic check, see how's everyone is going. Reuter, Heliscope,
K-Class, and Ahmed. I think let's go in that order. How's everything going today?
Hey, things are good. Just tuning in. I'm based in Asia, so it's 2am for me, but happy to be here.
And yeah, glad that the situation is being on its way to being resolved. So that's good.
Yo, go ahead.
I was just going to say 2am is an early GM, but you jump in, Elliscope. How's it going?
What's up, man? Thanks for pronouncing my name right for the first time. I know we haven't met in person yet, but appreciate to be here.
I happen to be traveling Asia as well this week. Like you mentioned, it's a little bit late in the evening, but DeFi, we're 24- 24 7 so always be up here so really an honor to be invited to this
tour space to share the update of navi and all of us so yeah great to be here it's good to have you
here and it's good to see so many d5 protocols jumping in and just people really stepping up
in suiz ecosystem k cost quick mic check gm how's it going hey how's it going? Hey, how's it going?
It's good. It's been hectic the past few days.
I mean, our app, Kai Finance, has been affected by the incident
because we are integrating with C2S quite deeply.
Luckily, not a lot of liquidity was affected just around the 10%. And thanks to the
vote and the reaction from the foundation and the validators, now this will be returned.
So I'm really glad about that. But yeah, it's been hectic. But we are, our service is almost
fully operational now. Our votes are fully operational. We started also, we opened up LP
positions on Bluefin. We already got $11 million in TVL from Kaifanis working on Bluefin.
So this is good, just trying to do the final few patches to get the volatile pairs going.
And then time to take a breather because it's been really hectic.
Well, I can tell you that myself and really everyone on this space
and everyone in Suiz community appreciates all the hard work that you're putting in
and the hard work that all these other builders have put in,
as well as the Cetus team. Just truly a sincere thank you because when something like this happens,
you know, crisis mode, as some may say, really appreciate you guys stepping up and everyone
stepping up to kind of build SWE better together and build it stronger. With that being said,
I wanted to welcome up Ahmad from Bluefin.
How's it going? Hey, everyone. Good to be on here. I feel a little special. It's only 6pm in London,
so I feel like I got the long end of the straw here. But yeah, I think to echo a lot of what
Klaus said, there's been a lot going on over the last few weeks. I think all of us have had some
long nights, but I think we've got a lot of positive.
It's been an inflection point.
I think there's been a lot of positive change
and a lot of good things for us to share.
Definitely.
And as Adani said,
there's been quite a bit going on,
but SWE has reacted quickly.
Cetus has reacted quickly.
And we're talking about kind of the post-hack or the post-exploit here.
And Adani, I had a question for you.
Would it be possible for you to kind of dive into what some of these active discussions
are that are going on at MISN or SWE Foundation and how you guys are thinking about strengthening
the ecosystem
in light of this recent incident?
So we always want to be proactive, right?
So the SWE Foundation actually just released a post
that talks about how they're being even increasingly proactive.
So people know, SWE is probably one of the only layer ones
that offers a free program that allows DeFi protocols to get
detection and monitoring tooling, as long as you just plug into a set of APIs. So that's
going to be a threat detection tool that goes across the entire ecosystem and encourage
more and more DeFi protocols to plug into that. Beyond that, of course, as I mentioned,
there's a $10 million increase in spending for security to allow as many protocols to get audited as quickly as possible.
Or get as broader audit coverage that they already have.
In addition, of course, to extending the buck bounty program to ensuring other protocols get the benefit that even a SWE base layer itself has in getting as much code review or as much overview from even white
hackers as possible.
So I think we're setting new standards or setting new norms as a result of this, which
I think is the right way to go.
Protocols don't really look to take care of applications above in that sense.
And I think it's the right direction, the right step, especially spawned by what we
saw recently. Yeah. And a lot of really good, a lot of really good initiatives that I think helped
to ultimately build trust in SWE, in the protocols on SWE and build trust from other people, maybe,
maybe people outside of SWE's ecosystem that are looking in curious to what happened and a very,
maybe people outside of SWE's ecosystem that are looking in, curious to what happened,
and a very strong, I don't want to say reaction, but a very strong way to come back from this.
And a lot of people will just kind of look at the numbers, right? Some people are very analytical.
They'll look at the numbers of SWE's volume or the TVL. And so if you had to quantify it,
if you had to kind of just ballpark it, what's SWE looking like right now in terms of TVL and some of those other metrics that you guys are paying attention to and maybe some community metrics as well?
Yeah, I mean SWE actively always has – oh, can you hear me?
Yeah, yeah, we can hear you.
Oh, okay. Sorry. I heard an echo there. SWE actively has over a billion dollars in TVL. As of right now, it's sitting about 1.8 billion in TVL.
What's even more interesting is the DEX volumes.
SWE is always in the nine digits in DeFi volume.
It's about 396 million today, and the day's not even over.
So we're seeing DeFi volume constantly increase in SWE.
I think we saw a day of over 600 million a couple of days ago.
App revenue is always increasing.
So what matters really beyond just having TVL,
and of course SWE price is something people like to discuss from time to time,
it's actually making sure that there's an increase on chain in usable assets.
And beyond just having high TVL, showing good trading volume is very important.
just having high TVL, showing good trading volume is very important. Trading volume of SWE,
even in the wake of the CTIS issue, still remained relatively good as well. So I think we've seen
that the other DeFi protocols, even in the midst of an emergency, are able to take on the load that
CTIS was missing out on. And I'm not super technical,
but I'm guessing that's because
Suite Network as a whole
and the infrastructure
and the way it's built
is really designed to be robust.
And from all the conversations
I've had with you
and Sam and Kostas and George,
the upfront investment
in that architecture
has really resulted in,
I think, for the most part,
a seamless experience on chain.
And of course, yeah, I mean, if you think about it, right, we've seen other networks have had issues in the past where you have to shut down the whole network in order to make sure that progress can continue and they could resolve issues.
That didn't have to happen on SWE.
The entire network continued operating as normal.
Only the attacker's account was paused, which is great.
And everybody else can keep on trading.
And most people who weren't affected by CETUS were able to trade on Bluefin,
trade on Aftermath, trade on other avenues without issues.
And what I really commend is the DeFi protocols who jumped in very quickly,
especially the lending protocols that decided to put a pause to operations
temporarily to make sure that the attacker couldn't get any further advantage.
That proved to be the right decision and went back on very, very quickly.
So the ability for the ecosystem to monitor and react really quickly,
and of course the way in which SWE is built,
affords it the ability to have this high robustness,
even in the midst of emergencies as well.
Yes. And you said something that I was actually going to say. The chain did not ever go down.
It's not like SWEET Network stopped working. And truthfully, it wasn't a SWEET Network issue.
It was an isolated incident with CETIS. And you brought up a great point about how all of these
different protocols, these DEXs,
took initiatives, took action right away.
I've heard the warm room was a bit hectic, but everyone was kind of working together.
And so I think it's a good time to maybe bring up and get the speakers here involved to hear what they're doing in terms of supporting SWE's ecosystem.
Maybe talk about some of their TVL, how they're growing,
how they're expanding, how they're looking to invest in and engage in the community,
build trust in Suiz ecosystem. So I guess how I see it on my X base is we'll go Reuter,
KClaus, Ahmed, and then it looks like Elliscope will get you back up on stage here.
And there we go. Reuter, if you want to kind of kick that off and maybe
give a background on everything you're doing, it'd be amazing. Yeah, I guess just to touch
on something that was mentioned earlier. So yeah, in the response to the hack, the suite network
continued working very smoothly. And I mean, speaking as someone who's been building on Solana for four
years, and went through many, many issues, many growing pains back then, definitely was like a
nice feeling that things just continue working, because I've been through so many issues in the
past where there's just like constant network issues. And like anytime there is volatility or like an IDO or like, you know, if there's a hack of this scale on Solana, like two years in, definitely the whole network would have been like really, really struggling.
And it's super painful for a lending protocol, which has to ensure that liquidations are still happening in a timely manner.
Because if they're not, then the protocol can end up with bad debt.
So definitely very thankful that like SWE systems are so robust.
And, you know, I think we're like standing on the shoulders of giants here where we,
you know, I think the SWE team has been able to build on top of like existing
innovations and progress in the space.
But yeah, definitely something that should be highlighted,
that things continued working very smoothly.
Personally, I didn't experience any issues.
I think there might have been some minor RPC issues.
But again, things were pretty smooth, which is quite impressive given like, you know, the billions of dollars of volume that were happening in that like really crazy time.
But yeah, I guess to give a bit more background about SuiLend.
So, of course, we've got SuiLend, which is a lending protocol. We've also got Spring Sui, which is an LST. And not just an
LST, but it's an LST platform where anyone can launch their own LST. And we can touch more on
that later. I think there's some interesting stuff to talk about with No Sui. And then finally,
we have Steam, which is an AMM that has a couple of interesting unique aspects to it.
One is that it lends out idle liquidity onto SuiLend
so that LPs get additional yield that would otherwise be an opportunity cost.
And the other aspect is that it has a modular quoting system
that allows for different quoting.
So you can do like full range liquidity or concentrated.
And yeah, post hack, one issue that we saw in this space
was that the on-chain liquidity had dried up quite a bit
because of course Cetus was the biggest DEX
and a lot of the liquidity was there,
especially for meme coins, a lot of majors as well, SWE, Deep, Walrus, etc.
And so for a lot of the assets that are listed as collateral on SWE Lend,
we were a little bit concerned about the liquidity
because the way that liquidators typically work is that they liquidate on-chain
because it's kind of hard to do
integrations with centralized exchanges because there's so many edge cases and nuances about like
withdrawal limits or like withdrawal times and like APIs, API keys like expiring and whatnot.
So typically most liquidator bots run on-chain and so in this environment, when a lot of DEXs were paused,
and then after that, just a lot of liquidity wasn't there. And also because a lot of
LPs had pulled their funds. Like, interestingly, Suiland had just hit 700 mil in TVL.
And then like that same hour, the Cetus hack happened and like over 100 mil was withdrawn.
And this is not just from SuiLend.
It was like, you know, across the board, not just lending.
It's like DEX as well, like Steam, TVL went down, just DeFi Llama, TVL in general came down.
And so, yeah, we launched this campaign called The Great Refill.
So basically we set aside a lot of incentives
to basically get the liquidity back on board
and get the on-chain liquidity back to a state
where we feel comfortable with the amount of borrowing
that there is on SuiLend
and across other lending protocols like Navi and Scallop. So yeah, that's one initiative. You can check it
out on Steam. We've got a lot of, uh, new pools with, you know, really attractive, uh,
opportunities and which you can check out and yeah.
Wow. You guys stayed busy and that's great to hear. It seems like you have taken quite a bit of action following the Cetus incident. And it seems like you've been very active with your community. We've seen the Steam account. We've seen you. We've seen many people from Sweden on spaces, which is great.
everyone out there that's listening, can you give a little bit of detail about what you guys have
maybe done to strengthen the safety of your code or protect the protocol in terms of protecting it
from exploits or hacks, et cetera? Just things that the community would like to maybe know about
Sweland and Steam? Yeah. So Sweland has been audited multiple times. So we've worked with ottersec and zealik um we also get every diff audited
anytime we make any kind of change even if it's like one line we get that reviewed um steam has
also been audited multiple times and then also as a result of this um we're taking yet another look
and we're working with uh yet another auditor to come in and review everything all
over again just to be extra extra sure that everything is in order.
And I guess another thing is we've been for lending protocols specifically smart contract
risk is just one aspect but economic risk is a you know very big thing that you have to
worry about and if if anything it's like even more common for there to be issues
there rather than the smart contracts themselves and in the last year we've
invested a lot into our like risk monitoring dashboards and tooling, which was extremely
useful during the weekend of the hack. We were able to pull some risk reports to get numbers
about if there's a 5% downward movement, how much debt would get liquidated, 10%, 15%, etc. And we have a breakdown
for every single asset. And that gives us a really good idea of where we're sitting in terms of
things. Because I think we're pretty lucky that after the hack and over the weekend, when liquidity
is typically thin, the price of sweet is actually really, really stable,
which we have to thank the lucky stars for that
because things could have ended up very differently
where maybe there's just some weekend market volatility.
Maybe Trump decided to do something that weekend
decided to do some something that weekend or like there's some news that drops.
or there's some news that drops.
And when, you know, all the TradFi people are like resting for the weekend, markets can move
really quickly. So yeah, I think we got out of it like in a pretty lucky way, I think.
Not lucky, but it was just like very fortunate that there wasn't too much volatility.
Um, but, uh, yeah, I guess like with the tooling that we've invested in, I feel a lot more, um, like confident with our ability to deal with these things.
Definitely. It sounds like you guys certainly, you know, you double checked your double checks,
you crossed the T's, you dotted the I's. And as you said, you know, it was fortunate we didn't have a crazy market event that was outside of our control. But I think from the community,
you know, I speak on their behalf and my behalf as well. Like, thank you so much for dedicating
the time energy into that additional OPSEC. It's amazing to hear. And K-Class, can you tell us a
little bit about Kai Finance and how you guys are investing into additional security?
And then maybe run through some of the stats on your end, right?
Like your TVL, the changes in APR opportunities, collateral caps, all these different things that are going on and how you guys are looking to proceed in the rest of 2025.
Sure.
Sure.
KyFinance is a project that started in around October, 2023.
It started as a yield aggregator and then we didn't find the right product market fit.
So we started working on this leveraged yield farming aspect of it. We launched that around October last year and then really
things started picking up really fast. We grew from around 200,000 K to 200,000 dollars of TRL and now up to 40 million.
We had fairly organic growth.
A really unique thing about us and Kai Finance is that we didn't launch a token and we also
bootstrapped everything.
We didn't take any external investors.
We just, well, invested our own time and also, of course, a lot of funding
from the SWIM Foundation via grants for various other projects we did in the past
helped, but even on marketing, we are doing a little bit here and there. We're not even fully going all out on marketing as well.
But things have been growing really, really well.
Our community is growing because we haven't launched a token.
Our community doesn't have all the annoying bots
and airdrop farmers.
So it's a very, very nice grassroots community.
We are very happy about that.
And of course, the incentives from the foundation help a lot,
but I have to brag that that so before the exploit happened we actually had on our stable
vaults out of the 15 or 10 apr we had on on stable coins only about 50 50 percent of that
only about 50% of that was from the incentives and the other 50% was from the actual interest rate that was generated by our users.
So this is like tracking towards sustainability.
And in terms of the security aspects, there's a lot to digest from the past few days. We are still yet to do a full
post-mortem. We're going to do that next week. But there's a few things that come to mind
that I think we can improve and potentially that other apps on SWE can improve.
The first thing is the response.
And I actually pinged Router about it earlier because SWEELAND is one of the more experienced teams on SWE,
given that they've been on Solana for such a long time and we know solana had their fair share of incidents
so i want to get some feedback from router and and potentially others on on how to
respond and how to prepare for these situations like either there's the exploit that like we had
now on cita some other protocol in the ecosystem is exploited,
or even your own protocol is exploited.
Here you need to think about your response, like whether you can be reached,
like whether if the exploit is happening in the middle of the night, can you be reached and can you react?
So that's one thing that the response and then various things you can do to bolster the security of our smart contracts, like putting withdrawal limits on the liquidity
that can be from the smart contract at any given time.
This can be all done on smart contract level and various other things. But in terms of the security we have today, I think we are fairly robust given we've done
two audits.
We've done audits with Movebit and Asymptotic and currently we're in progress with doing
another audit with AutorSec that's been scheduled a few months ago.
Coincidentally, they're about to finish it.
Um, and yeah, um, yeah, we still still there's a lot to digest.
This was like a first kind of incident we went through.
We're very thankful.
It all ended well.
And now we need to like look at the positive side
and just think about the things
and the lessons we can learn from this whole thing.
And then work together as a community,
together with the other builders,
see how we can give feedback to each other and learn from each other
to bolster our protocols, increase the security,
because we're all in this together.
If one app is affected, as we've seen, then everybody else is affected,
as Ruter said in this example with
situs a lot of the tvl was stake on situs it goes down also bluffing was passed and then
there's a whole issue of the liquidity and whether uh liquidations can go through. So, yeah, we need to look out for each other and work together
because it's a single ecosystem and we need to have the growing
the pie mindset because most of the upside is going to come
from the new users
and new liquidity that comes to SWE
rather than fighting each other within the ecosystem
and seeing each other as competition.
There's not much upside there.
So we all need to work together as one team
to look out for you know, look,
look out for each other,
make sure things are safe.
Yes,
really well said there.
Something I always emphasize to people about SWE is that there really is a,
like a PPP,
which is player pushes player mindset,
this EVE,
I guess you could say as well,
but SWE really has come together and been so supportive
instead of trying to attack one another or tear each other down. And I'm not going to name any
other chains or call any other ecosystems out, but SWE really stands out as a leading network
for builders helping builders. So I'm going to bring that up. And if you guys are listening in,
KCLAWS just talked about,
they're going to do a full post-mortem and access to their audits
and working with all these different InfoSec teams.
And I'm sure that Rooter and Elliscope
and Ahmed are as well.
So if you guys are listening in,
I would recommend following them.
Follow Adani if you're not already,
but follow these people
because they're going to be publishing information, great resources that you can always refer to.
And just be careful when clicking links. Again, that's why I would recommend following their
accounts. There you can find the official accounts for the DEX protocols and just stay safe online.
We don't want anyone else having any kind of hack or exploit. So I'm going to go over to Ahmed.
And if you can just share again, a little bit about what Bluefin is doing post the CEDIS
incident and how you're thinking about moving forward and some of your metrics and maybe some
of the initiatives that you guys are taking with the community, that would be awesome.
Yeah, let's do it. Can you guys hear me okay? Yeah, I see the icon.
All right, so to give some context, Bluefin powers trading in many different ways. We have
a Perpetuals product, we have an RFQ protocol, and we have an AMM DEX. So as all this was going on,
there were kind of layers of durability we were able to offer. So within Bluefin Perps, it remains completely operational.
A lot of its risk engine is fully contained and heavily layered.
So like our standard liquidations, the game theory around it incentivizes good behavior
and getting liquidations done timely.
It's kind of similar to lending protocols, but on top of that, we'll have insurance funds and a lot of backstop liquidity. And in the end, it's a zero sum game. So there's
no, you know, liquidity dry ups, etc. aren't impacted or don't impact the trading behavior
or any of the risk on that protocol. And then next, we had BluefinX, which is our RFQ protocol,
which basically provides the same thing that an AMM would, which is swapping, but instead does it via intent auctions from searchers.
And it's able to do this now with no slippage, no gas.
And as all of this was going on, you know, there was a lot of precautionary measures taken by a lot of DEXs to pause and be able to assess what's going on.
taken by a lot of DEXs to pause and be able to assess what's going on.
And through this period, the RFQ BluefinX was able to take on a lot of that volume.
I think there were other protocols out there.
Ruter just chatted about Steam and others that I think these few protocols added a bit
of durability that helped continue to power a lot of the swap volume.
And then finally, there's Bluefin's own AMM. That's where a lot
of our TVL sits. And that's where when we were in the war room, we took also that precautionary
measure to immediately pause. From there, we worked with security firms like Asymptotic,
Autosec, even the Suite Foundation to double and then triple check before we were confident
in taking the protocol back live.
And then since then, we've also been pretty vocal about everything we've done to evolve
our security posture.
So first up, we partnered and funded Asymptotic, which is a security firm that's been building
the suite prover, specifically funded them.
And they're also taking on some of that cost to formally verify the whole integer mate
library for those that don't know the formal verification is basically taking things a step
further than unit tests and audits it's a way to add mathematical specs and proofs to the
invariants that we're defining and have them be provably correct in almost every single permutation
and so we're doing that initially.
The Asm.txt team did that for the exact area where the exploit happened,
but we're not extending that to the whole library because there's just a lot of ecosystem-wide usage.
This is first and foremost for BluFn's own security strength,
but also as an ecosystem contribution for everybody to start using in their protocols.
From there, I think that we looked at introducing some layers of defense.
So we explored this idea of withdrawal time locks.
So what you can do is across all our protocols,
we've observed there is behavior that you can normalize
and then calculate standard deviations on, right?
So like if we've never since the inception of the protocol
seen 100 million be withdrawn, likely that signals potential risky behavior. And what we can build into the system is an automatic time lock that will still let this go through, maybe somebody is really rebalancing that many funds. But in the event they're not, in that period, alerts have gone off, we have been able to triage it. And then if it's valid, great, we'll accelerate it,
and we won't even let the time lock be needed.
In the worst case, we're able to triage and respond,
you know, and contain that damage
before it really drains out the whole protocol
or does something extreme.
And then the last layer, I think, bug bounties.
Denny was talking about this too.
We've been live on Hack and Proof since 2024.
We're now since further expanding that,
we've bumped up the incentives there.
We're slowly adding on a lot of the threat modeling
we do internally into there
so that people can start economically approaching it as well
and see different ways in which they can breach it.
So there's a bunch of different things we're doing.
This is all on top of the six audits we've already completed. But, you know, we just decided that
we can't stop there. It's not security isn't something you have, you have to keep building
it. And this is kind of our commitment towards that. And to be honest, I think that some of
these measures, along with a lot of the great steps taken by the SWE Foundation throughout this period, has reflected really well in user trust and confidence. I think our TVL, I was just
looking up the statistics before the call, has grown from 35 million to 200 million since our TGE
in the last six to seven months. And 30% of that growth alone has just been in the last week since
the incident, we're at an all-time high of 61 billion plus in total volume across our perfs and spot products.
The number of unique users on our UI has already grown like eight to 10 times within the last week.
And then the lending protocol as well that we launched in partnership with Alpha Lend a few weeks ago
has more than 135 million
in total supplied. And through all these means, we're now the number one fee generating protocol
on SWE, the largest perps and largest spot exchange, and the only SWE native platform with
perps, spot and lending all live in production. So that's what's out there for the community.
We have a lot of these things up and incentivized.
If you're a builder,
we have that formally verified library coming out for you.
I think Azen Totic and us are pushing to get it out
by end of this week, at least some of the core areas.
If you're a white hat,
we bumped up our boundaries quite a bit.
Check those out.
If you're a user,
our APRs on some of our amm pools right now are 500 plus while uscc deep uscc sweet uscc so you can
come check those out and then if you are just getting into the suite foundation uh sorry if
you're just getting into the suite protocol the rfq protocol is actually a great way to just come
in and do swaps with no gas,
no slipage. So I think that kind of covers everything I want to share to users. But I
think in a time like this, where our ears are pretty close to the ground. So if there's anything
else, please get on our Discord, get on our Twitter, tell us what else you need. But it's
been great working with everyone here, especially in the Sweet Foundation and coming out of this a bit stronger.
And I did see the partnership announcement
that you made with Asymptotic
and just want to give you guys kudos there.
I think that's awesome.
Being able to, like you said,
take it a step further,
formally verify that integer mate,
that core math library.
That's key.
And yeah, again, just big round of applause for you guys on doing that. Everyone up here is really investing into their security
practices, their OPSEC. And as you said, it's not something, security is not something you just do
once and you're okay with it. It really is something that you continue to invest in. And
that investment comes back to build trust,
to keep users safe and to reassure the community.
So thank you so much for coming up.
And I'm going to throw it over,
I guess, save the best for last, Elliscope.
I know you had some technical issues,
but coming on up here
and can share a little bit about Navi.
Again, some of the metrics,
the things that you guys are looking at,
how you've engaged with the community,
things you're doing on the security front. We'd love to hear from yourself and from what Navi is doing right now. Yeah, thanks, David. And first of all, I want to quickly
introduce Navi. Navi protocol, we're the very first native liquidity protocol built on top
of three network.
It has been live for one year and almost like half, close to two years since we launched Mainnet,
sustaining over $35 billion of lending volume and $15 billion of borrowing volume since day one of launch. And when the accident happened, we had a protocol.
There were three parts I would love to touch on points,
how we react to handle the issue.
The first part is immediate risk react to mitigate the loss.
We had a protocol, we freeze the deposit and boiling within the first three hours since the accident.
My team had been having designed this 24-7 mechanism
to monitor any kind of social media
and ad hoc alert ecosystem to raise awareness
to me and my co-founders so we can act quickly upon those.
And thankfully, because we freeze both
deposit and borrowing of the protocol,
there was no hackers funds being deposited
and attempting to borrow our liquidity from the protocol. So the protocol was intact with
the $700 million TVR at the time when the accident happened. Second, we took an immediately
balanced cross-check mechanism to evaluate any kind of suspicious transaction that's been happening on our own platform.
We did observe 17% of withdrawal of liquidity from the TVO standpoint, things that have happened. together with the CITUS mentioning that the liquidity,
the ecosystem will compensate the loss of LP for 100%.
We have observed 25% of bounce back of the TVL,
which already on the edge of recovering
to the initial stage of before the accident.
So by those metrics and stats,
what I want to share is how immediately within the past six to seven days,
the ecosystem acted together to resolve the issue and accident
and making the community feel whole again.
Kudos for SWIFT Foundation, Mistin Labs,
and a variety of DeFi protocol partners to act upon those
things together you know and last but not least um as a landing protocol like routers mentioned
and a few other people mentioned right so the on-chain liquidity was a primary matrix that we
evaluate when we're designing our parameters and metrics. And we did redeploy a lot of liquidity for Navex token immediately
on top of DEXs, leading DEXs like Momentum and Bluffin
to balance out our own token liquidity
that did effectively prevent our own token from plunging 90%,
like a lot of meme coins and tokens that
got impacted through the drain of the DAX liquidity on CETA specifically.
Yeah, this is the first point.
And the second part, we did start taking some retrospective meetings after the war room.
taking some retrospective meetings after the war room.
We re-engaged with Slow Mist, Satora, and a few other auditing firms
to come up with a slightly more mid-tier and long-term plan
for how we should strengthen the security of the landing protocol at ourselves.
Before this, my team had been very fortunate to execute on an iceberg product like SISUS, which means
what the user observed is only one third of the product that's been shown on the surface.
However, there has been 12 out of 13% of monitoring systems that's been built on the line to observe,
for example, key metrics like, let's say if three tokens tanks 20%,
how much of the TBR will get liquidated.
And we use those metrics as a key indicator
of how much on-chain liquidity we do require
to sustain the current parameters like LTV,
supply volume, etc.
So my team did engage with a variety of auditing firms
and re-evaluate the metrics before reopening the balling.
So personally, I'm very grateful for how experienced the team was able to execute.
And last but not least,
there are also some key factors I do want to share
from the ecosystem level
for every audience here
to understand
how quickly 3 was.
So today,
I posted a question on ChatGP asking,
hey, give me an example.
Are there any other blockchain
that issued a $50 million plus secure loan
for a hack over $20 million plus level of hack?
And the answer I got was there was two examples.
One was Euler Finance, which is a lending protocol on top of the EVM ecosystem
that suffered a $197 million flash loan attack.
The ecosystem's Ethereum foundation didn't react, and all the finance had to put everything on pause.
Eventually, they got funds back, but the founder, Michael, chatted with me.
We met in person before.
They had to shut down the whole protocol and restart the protocol again as 2.0.
The second example was a poly network.
There was 610 million tech, and the ecosystem didn't react neither. Quote from ChatGPT,
three foundations approach as notably sweet and structured distinguishing from other recovery
efforts in the blockchain space. It was quite phenomenal in terms of the timestamp,
how they effectively issued a loan of $60 million to CEDUS
and how they quickly aligned and suggest approach across validators
to get the rest $160 million plus of tokens back.
So, you know, given those three factors,
I do feel very confident of every DeFi builders here
from Bluefin, SriLan, you know, DEXs
and Momentum variety of DEXs.
This is quite phenomenal in terms of
how we quickly align together.
That do makes me feel much more confident
of the future of the ecosystem,
of how each funder takes care of their own plate,
but also care about the ecosystem.
And yeah, we at Navi have always been,
I wouldn't call it like phenomenon,
but I would say like very fortunate
to be part of the fleet to help the ecosystem grow. So yeah, so back to you, David. Thanks for the time.
us, Ahmed, and Elliscope. If you guys had to sum it up in one word, right, this incredible rebound
by SWE, the ability for the ecosystem to come together and to show up, and I think to come
back stronger, if you had to sum it up in one word, your impression from this entire situation,
how we move forward, what word do you think summarizes it rooter what do you think i think i'd probably
go with resilient i think that sui has really shown itself to be resilient with the way that it
uh moves super quickly like you know 160 mil frozen within hours like that's a really great
outcome for such a quick time and then um you, now we're on the path to users getting made whole 100%.
That's really awesome.
And as Alice Coe mentioned, very rare to see such an outcome.
Like usually when there's a hack, like, you know, people don't see their funds again.
So, yeah.
And then I think the community as well has been showing itself to be resilient.
I didn't have any doubt in my mind for a second that SWE wouldn't continue to crush it.
I think some people on the outside who just see the headlines and they're not in the trenches of SWE,
they might see that news and think, oh, SWE is cooked after this.
But I think for anyone who's actually participating,
it's like super, super clear that the builders here are, you know,
very strong, resilient, and that we've got a bright future ahead of us.
Great word. Resilient is definitely one that came to my mind.
Ahmed or KCOS, do you have a word that just resounds with you
and you think applies to this entire situation?
I'd say bullish.
Bullish. I like that.
Bullish because the confidence that the foundation has in the ecosystem
and the future growth of the network,
it just makes me really bullish.
How about you?
A lot of what Reuter and Klass have said,
I think that tenacity is another one that always comes to my mind.
I think anybody that's gone out there
and tried to build something for the world,
it's not easy.
It's hard as hell.
And I don't think the best teams are the ones that never see risk.
It's the ones that keep evolving through it,
that show up through the hard times.
And I think that the Sweet Foundation and a lot of the DeFi teams here
did an excellent job.
Like, we're resilient, pushed through a lot.
And as Klaus said, I think that makes me bullish on the upsides here
in the upcoming weeks.
Amazing. So we have resilient, we have bullish, we have tenacity.
Lscope, one word, what do you think it is that applies to this?
I strongly feel that there's a certain level of united decentralization that's been felt among all the DeFi builders.
has been felt among all the DeFi builders.
You know, the facts I don't want to give out is
from the retail standpoint,
a lot of people feel like though the voting process
was very centralized,
but feel free to call me on this.
There had never been any ask or demand
from the SWE Foundation or any official level
asking me to shut down, put it on pause from the protocol level.
So every act, I'm pretty sure from Bluefin, from Danny, and from Ruder, everybody feels
the same, was the level of united decentralization.
That is probably a word I don't even know what's the meaning about it.
I do strongly feel that that has been achieved throughout this whole process. So even from the retail
standpoint, people feel, oh, did the suite, did everybody lobby
everybody to get together to attend, you know, like vote
for 30,000. But the fact was there was never been such
behavior or action. So I would call it a successful
example of social experiment of
United Decentralization. That's a good one. Unity. Decentralize. I'm actually glad that
you're bringing this up because I wanted to ask Adani about the perception of decentralization
and the topic and the conversation. And we've seen it all over the timeline. I've had several
different spaces about it. I wrote a thread about it.
There's this thing called the Nakamoto coefficient.
Everyone has their take and their opinion on decentralization.
But I think how the situation was handled actually exemplifies what decentralization
can do for an ecosystem.
And Adani, I know you talked about it on the space, but can you maybe share again your insights about how this situation, this exploit has proven why decentralization is valuable and maybe where SWE network is looking to go in the future to add further decentralization or make SWE sufficiently decentralized, as George likes to say.
And I think it is. So can you share some insights there? Yeah, it's a good point.
I mean, to tack on to what Ellis said previously,
I think the word you're looking for,
or at least the phrase you're looking for,
is shared values.
A lot of us in the ecosystem have a sense of shared values that we adhere to,
which is why I think this vote around what to do with the funds
for CETUS has come across the way it has so quickly.
And to touch on decentralization,
I think SWE did actually demonstrate
amazing decentralization as a result of this hack.
I think SWE's seen a new level of maturity,
which is awesome.
But if you think about it,
the hack, when it happened,
validated independently we were able to vote
and got to a quorum very, very quickly.
Two thirds of them were able to vote very quickly
to lock the funds that were being stolen
because their job is to, remember, it's a delegated proof of stake system their job is to
defend the values of the stakers and ecosystem and they felt the values the stakers ecosystem was not
to lose 200 million dollars I don't know who would ever vote to lose money but I think they did the
right thing very quickly and now there's a vote ongoing as to what to do with the locked funds.
And the majority of people right now, I think if I take a look, it's about 71.2% are voted to the affirmative to return the funds to those affected.
So there's an element of not a single individual can change the direction of everything.
You need consensus across a broad set.
I think the threshold for consensus is two-thirds, which has happened. And we're also seeing more,
we're going to see greater than two-thirds participation in the voting as well. A great
thing as well is a foundation has chosen to stay out of a vote, which, you know, their votes are
not being counted in this whole process, which I think also is an element of decentralization in allowing the people to choose.
So I would probably cap it off in saying,
when you build systems, you build it for human beings, for users.
And the requirements for the system needs to take into effect
the fact that users have needs.
And a system that's rigid and does not tailor to the needs of users
will not find product market fit.
It's just the way the world works.
And I believe SWE is finding product market fit in attracting users, in attracting developers, and it will continually do so.
People first at all times.
Really well said there.
Really well said there. And if you guys are tuning in, or if you need a quick recap of some of the
things that SWE Network is doing to really, I think, double down on security and everything
Adani has said, there are two posts that are pinned up here in the Jumbotron. I would recommend
you check those out, recommend bookmarking them, share them around. Anything that we can do
collectively as an ecosystem to share good educational materials, I think is really going to, it's going to set us apart. And I think SWE
already stands alone in that regard, right? A chain that is united, a chain that has tenacity,
extremely resilient. And for those reasons, I'm bullish. So kind of capturing some of those,
those one word sentiments and add any, any closing thoughts, anything else you'd like to share with everyone here
before we wrap up this space?
I'd say Sioux Community is awesome
and continues to show itself there.
We're the most innovative ecosystem out there
and we'll keep that banner and we'll keep flying that flag.
So thanks for the trust in the network
and thanks for everyone for participating
in the conversations.
I think some new interesting conversations were sparked out in the last couple of days
all very healthy and i think sweet is a lot stronger as the outcome of this
so thanks everyone let's keep building
let's keep building great way to sum it up guys it's been an amazing space we've heard some we've
heard from router with sweland and steam elliscope from Navi, K-Class from
Kai Finance, and then Ahmed with Bluefin. Some great DEX protocols out there on Sui.
There's also many others. And one thing that we can take away from this is there are several good
builders. There are community builders, technical builders. There are people that are coming
together to make Sui a better ecosystem. And if you haven't heard of some of these new
protocols, would highly recommend you dive in. Again, please make sure to check out their profiles.
Don't click any sketchy links, all that good stuff. And SWE Network main account, thank you
so much for setting up this space and organizing it. It's been a pleasure hosting, guys.
Thanks, David.
Thanks for having us.
Thanks, David. Thank you.
