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Chainlink CCIP just secured another major DeFi migration.
ByChayanika Deka
Bitcoin-focused DeFi platform Solv Protocol announced that it is fully migrating to the Chainlink Cross-Chain Interoperability Protocol (CCIP) as part of its updated security strategy for cross-chain transactions.
The move will cover more than $700 million in Bitcoin-related assets across SolvBTC and xSolvBTC.
Solv Ends LayerZero Bridging Support
As part of the transition, Solv saidit will discontinue LayerZero bridging support for SolvBTC and xSolvBTC on Corn, Berachain, Rootstock, and TAC. The platform explained that it is reducing risk exposure on its existing bridging stack and standardizing its infrastructure on Chainlink CCIP.
Solv described cross-chain bridges as one of the highest-risk areas in decentralized finance, while noting that vulnerabilities in bridge infrastructure can create significant systemic risks for the sector. The platform also confirmed carrying out a complete updated review of available cross-chain interoperability solutions before selecting Chainlink CCIP.
Commenting on the development, Chainlink Labs’ Chief Business Officer, Johann Eid, said,
“We are proud to work with the Solv team and support their migration to Chainlink CCIP as the standardized way that their wrapped Bitcoin assets are securely transferred cross-chain. Solv’s migration to CCIP reflects a broader shift across the DeFi industry of leading protocols adopting Chainlink to deliver the highest level of security required to bring the next billion users onchain.”
LayerZero Breach Fallout Deepens
Solv Protocol’s decision to migrate its cross-chain infrastructure to Chainlink comes weeks after the massive April 18 exploit involving LayerZero-powered KelpDAO, which resulted in losses of roughly $292 million. The attacker, reportedly linked to North Korea’s Lazarus Group, allegedly exploited weaknesses tied to LayerZero’s infrastructure, according to KelpDAO’s public statements.
The DeFi protocol pushed back against claims from LayerZero Labs that the breach stemmed from a configuration issue unique to KelpDAO. Instead, Kelp argued that the setup followed LayerZero’s official documentation and reflected a standard deployment model used by many applications across the ecosystem.
Source: cryptopotato.com