The Sui Ecosystem Gradually Recovers: The Reconstruction Path After Security Incidents

Recently, the Sui network has undergone a severe test. On May 22, a decentralized trading platform within the ecosystem was attacked by hackers, resulting in a loss of approximately $223 million. This incident not only caused panic among users but also led to a significant outflow of on-chain funds. Data shows that the total value locked (TVL) in the Sui network plummeted from a peak of around $2.1 billion to $1.57 billion, a drop of over 25%.

In the face of the crisis, the relevant team quickly took a series of measures. With the cooperation of most Sui validation nodes, the two main wallet addresses used by the attackers to transfer funds were successfully frozen. At the same time, the team collaborated with the Sui security team and several security audit institutions to conduct a comprehensive audit of the smart contracts and developed a recovery plan for user assets. To compensate for user losses, the team not only invested all cash reserves of $7 million but also obtained a loan of 30 million USDC from the Sui Foundation.

On June 8th, the trading platform officially resumed operations, reopening all functions including trading and liquidity management. The recovery level of the affected liquidity pools reached 85%-99%. In addition, the platform pledged to allocate 15% of the total amount of tokens from the agreement to compensate affected users, of which 5% can be claimed immediately and 10% will be unlocked linearly over the next year.

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

In this "disaster recovery" process, four agreements have performed outstandingly in terms of TVL and user growth, namely Momentum, Turbos, Bluefin, and Kai.

Momentum is the first decentralized trading platform on Sui with a native ve(3,3) mechanism. Through the governance token veMO combined with voting incentives, users can lock assets to earn a share of trading fees and protocol incentives, encouraging long-term participation and governance of the protocol. Since its launch in March this year, Momentum has rapidly grown in terms of TVL and trading volume. Currently, its TVL has surpassed $89 million, reaching an all-time high, and total trading volume has exceeded $3.6 billion, with over 420,000 accumulated users.

Turbos is a trading platform that was deployed on the first day of the Sui mainnet launch. Its architectural design emphasizes modular decoupling, with each functional module relatively independent, effectively reducing systemic risk. In this security incident, Turbos' contracts did not involve any functions with vulnerabilities, and the entire platform was unaffected. After the incident, Turbos quickly initiated a self-examination and invited multiple third-party security agencies for independent audits. While other platforms suspended services, Turbos maintained stable operations, demonstrating the platform's technical maturity and security resilience.

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 and continues to expand its user base and product portfolio.

Kai is a protocol that offers strategy automation management, focusing on providing users with on-chain asset allocation and yield aggregation services. Users can deploy strategy pools to gain features such as automatic reinvestment and risk adjustment, reducing operational complexity. Kai's mechanism is suitable for users who wish to achieve stable returns with low participation. Its strategy combinations are constantly expanding, covering various investment needs with different risk preferences. Currently, the platform has attracted a group of users who prefer conservative investments, and the TVL shows a steady growth trend.

Overall, although this security incident has caused a phased impact on the Sui ecosystem, it has also become a verification node for the resilience of the ecosystem. The stable growth of Momentum, Turbos, Bluefin, and Kai not only stabilized the TVL in the short term but also demonstrated their comprehensive strength in mechanism design, security strategies, and user attraction. As the ecosystem recovery progresses, user confidence is gradually warming up, and Sui is gradually stepping out of the shadow of the black swan event, moving towards a new stage of development.