Solv Protocol Will Dump LayerZero, Migrate $700M Tokenized Bitcoin Tech to Chainlink

One other crypto challenge is leaving blockchain interoperability protocol LayerZero after the fallout from the $292 million Kelp DAO exploit intensified scrutiny round cross-chain bridge safety.

In an announcement Thursday, Solv Protocol stated it’s migrating the infrastructure that powers greater than $700 million in tokenized Bitcoin from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol (CCIP), following what it described as a broader safety evaluate of cross-chain techniques.

The protocol stated it’s deprecating LayerZero bridge help for Corn, Berachain, Rootstock, and TAC whereas standardizing its infrastructure round Chainlink’s CCIP.

“Safety is the inspiration of every thing we construct at Solv, and our migration to Chainlink CCIP reinforces that dedication on the highest stage,” Solv Protocol Chief Know-how Officer Will Wang stated in an announcement. “By absolutely securing SolvBTC and xSolvBTC cross-chain transfers with CCIP, we’re offering customers the very best assurance that confirmed, defense-in-depth infrastructure secures all cross-chain transfers.”

In response to Wang, the migration positions Solv to scale with “the reliability and institutional-grade safety assurance the market calls for.”

Launched in 2021 on the Ethereum community, Solv Protocol is a DeFi platform constructed round SolvBTC—a token tied to the worth of Bitcoin—that lets customers deploy wrapped BTC and different Bitcoin-based property throughout a number of blockchains to earn yield.

The transfer comes weeks after attackers drained roughly $292 million from infrastructure tied to Kelp DAO, a DeFi protocol that used LayerZero’s bridge know-how. Solv didn’t straight point out Kelp DAO in its announcement, as a substitute referring broadly to “current cross-chain hacks noticed within the trade” alongside an in depth safety evaluate.

“In accordance with this strategic migration, we’re lowering our danger publicity on our current bridging stack by deprecating SolvBTC and xSolvBTC LayerZero bridging help for Corn, Berachain, Rootstock, and TAC to as a substitute standardize on Chainlink CCIP, probably the most battle-hardened and time-tested interoperability infrastructure throughout all blockchains,” the corporate wrote.

Whereas cross-chain bridges let customers transfer property between blockchains, they’ve additionally change into one in all crypto’s most often attacked items of infrastructure as a result of they usually rely upon sophisticated verification techniques and maintain massive quantities of locked funds.

Earlier outstanding assaults on blockchain community bridges embrace the $622 million exploit of Axie Infinity’s Ronin network bridge in 2022, and the $230 hack of Indian crypto alternate WazirX in 2024. Each assaults have been finally linked by investigators to North Korean state-sponsored hacking teams.

In April, LayerZero blamed the Kelp DAO assault on North Korea’s Lazarus Group, and stated the challenge relied on a single-verifier setup regardless of suggestions to make use of a number of validators.

This week, Kelp DAO disputed that account and accused LayerZero of approving the configuration tied to the exploit. Kelp then introduced plans to revamp its cross-chain system round Chainlink CCIP, the place transactions are verified via a number of unbiased validators as a substitute of a single verifier.

“We’re proud to work with the Solv crew and help their migration to Chainlink CCIP because the standardized means that their wrapped Bitcoin property are securely transferred cross-chain,” Chainlink Labs Chief Enterprise Officer Johann Eid stated, in an announcement. “Solv’s migration to CCIP displays a broader shift throughout the DeFi trade of main protocols adopting Chainlink to ship the very best stage of safety required to deliver the subsequent billion customers on-chain.”