Sui Ecosystem Recovery: A New Chapter After the Security Incident

Recently, the Sui network experienced a significant security incident, where a decentralized trading platform was attacked, resulting in approximately $223 million in losses. This event had a substantial impact on the entire ecosystem, causing panic among users and leading to a massive outflow of on-chain funds. Data shows that the total value locked (TVL) in the Sui network plummeted from a high of around $2.1 billion to a low of $1.57 billion, a decline of over 25%, putting the entire ecosystem under severe strain.

After the incident, the relevant platforms quickly took countermeasures. With the assistance of most Sui validation nodes, they successfully froze the main wallet addresses used by the attackers to transfer funds. At the same time, the platform collaborated with the Sui security team and several security auditing firms to conduct a comprehensive review of the smart contracts and develop a user asset recovery plan. To compensate for the losses, the platform invested all of its cash reserves of $7 million and obtained a loan of 30 million USDC from the Sui Foundation to compensate affected users.

After a series of efforts, the trading platform resumed full operations on June 8, reopening functions such as trading and liquidity management. The liquidity recovery level of the affected liquidity pools reached 85%-99%. In addition, the platform promised to allocate 15% of the total token supply to compensate affected users, of which 5% can be claimed immediately and 10% will be unlocked linearly over the next year.

Although this incident has had a significant impact on the Sui ecosystem, on-chain data shows that the TVL is steadily recovering. As of now, the TVL has returned to $1.92 billion, close to the level before the incident occurred. This not only reflects the gradual recovery of user confidence but also indicates that some protocols are attracting new capital inflows, playing a role in stabilizing the market.

In this "post-disaster reconstruction" process, four protocols have stood out in terms of TVL and user growth, namely Momentum, Turbos, Bluefin, and Kai.

Momentum is the first decentralized trading platform on Sui that adopts the ve(3,3) mechanism. Through the governance token veMO and voting incentives, users can lock assets to earn transaction fee sharing and protocol incentives, encouraging long-term participation and protocol governance. Since its launch in March this year, Momentum has rapidly grown in terms of TVL and trading volume, with TVL surpassing 89 million USD, setting a new historical high. The total trading volume has exceeded 3.6 billion USD, and the cumulative user count has surpassed 420,000. Recently, Momentum completed a new round of strategic financing, further enhancing its ecological expansion capability.

Turbos is a decentralized exchange that was deployed on the first day of the Sui mainnet launch. Its architectural design emphasizes modular decoupling, effectively reducing systemic risk. In recent security incidents, Turbos' contracts were unaffected, and the platform maintained stable operation. After the incident, Turbos quickly initiated a self-examination and invited several third-party security agencies for independent audits, the results of which showed the platform's operational safety. As market confidence recovers, multiple mainstream tokens are transferring most of their liquidity to Turbos, reflecting the market's recognition of its technical stability and security.

Bluefin is a protocol focused on decentralized derivatives trading, providing users with financial products such as perpetual contracts. Its product structure relies on on-chain matching and clearing mechanisms, offering high transparency and operational stability. Bluefin's matching engine optimizes trading efficiency while reducing slippage, making it suitable for medium to high-frequency traders and hedging strategy users. Currently, the Bluefin platform maintains a relatively stable trading activity level and continues to expand its user base and product offerings.

Kai is a protocol that provides strategy automation management, focusing on offering users on-chain asset allocation and yield aggregation services. Users can deploy strategy pools to gain features like automatic reinvestment and risk adjustment, simplifying the operation process. Kai's mechanism is suitable for users looking to achieve stable returns with a lower level of involvement, and its strategy combinations are continuously expanding to cover different risk preferences in investment needs. Currently, the platform has attracted a group of users who prefer conservative investments, and the TVL is showing a steady growth trend.

Overall, although recent security incidents have caused a short-term impact on the Sui ecosystem, they have also become an important milestone for testing the resilience of the ecosystem. The stable growth of Momentum, Turbos, Bluefin, and Kai has not only supported the TVL in the short term but also showcased their comprehensive strength in mechanism design, security strategies, and user attraction. As the ecosystem gradually recovers and user confidence gradually warms up, Sui is gradually stepping out of the shadow of this event and moving towards a new stage of development.