This guide provides a technical overview for developers looking to build on or integrate with Cetus Protocol Official, focusing on its core innovation: the Cetus Concentrated Liquidity algorithm on the Move-based blockchains Cetus on Sui and Cetus on Aptos.
Step 1: Understanding the Concentrated Liquidity Model (CLM)
Unlike traditional AMMs where liquidity is spread thinly across an infinite price range, Cetus's CLM allows liquidity providers (LPs) to concentrate their capital within specific, custom price ranges.
Mechanism: LPs create positions by selecting a fee tier and a price range (lower tick and upper tick). Their assets are only used for trades that occur within this range.
Advantage: This dramatically increases capital efficiency, leading to higher fees for LPs and lower slippage for traders who Swap on Cetus.
Step 2: Interacting with Liquidity Pools
Developers can interact with Cetus Liquidity Pools programmatically using the Cetus SDK.
Creating a Position: To add liquidity, your dApp will need to call the function to create a new position, specifying the token pair, fee tier, and the price range.
Managing Positions: LPs need to actively manage their positions. Your application should provide interfaces for users to add/remove liquidity, collect accrued fees, and adjust their price ranges as the market moves.
Swaps: The SDK provides simple functions to execute swaps, which will automatically route through the most liquid concentrated positions to ensure the best price.
Step 3: Staking and Rewards
The Stake CETUS Guide outlines how users can stake their CETUS tokens to participate in governance and earn a share of protocol fees. This aligns the incentives of the token holders with the long-term health of the Cetus DEX.
Step 4: Security Considerations
The question "Is Cetus Protocol Safe?" is addressed by its deployment on modern, secure blockchains (Sui and Aptos) and its open-source, audited smart contracts. The non-custodial nature of the protocol ensures users always maintain control of their funds.
For all SDK documentation, smart contract addresses, and CLM algorithm details, refer to the Full Official Documentation.
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