Kraken will switch from LayerZero to Chainlink after Kelp DAO Hack.
Crypto exchange Kraken has announced that it has switched its cross-chain provider from LayerZero to Chainlink's Cross-Chain Interoperability Protocol, joining several protocols that took action following the Kelp DAO exploit in April.
Kraken he said. Discontinuing its current cross-chain provider, it is migrating to Chainlink CCIP as a dedicated cross-chain infrastructure to secure Kraken Scroll Bitcoin (kBTC) and all future Scroll tokens.
The company said it chose ChainLink CCIP because it “provides enterprise-grade infrastructure with strict security and risk management requirements.” These include certificates, secure by default design, 16 independent nodes and generation rate limits.
LayerZero has been under investigation since. Kelp DAO exploitation In April, approximately $292 million worth of Liquid Recovery tokens were stolen by actors suspected of having ties to North Korea's Lazar group.
Layer zero Given “I've been doing a terrible job on commissions for the last three weeks,” he wrote on May 9. “Apologies for the delay.”
It admitted that its RPCs (remote procedure calls) were attacked and “the source of truth was poisoned” and its external RPC providers were simultaneously denied-of-service attacks, but blamed Kelp's configuration due to their single-DVN (decentralized authentication network) configuration.
LayerZero has confirmed that no other apps have been affected, and more than $9 billion worth of bridging assets have moved the protocol since April 19.
Other protocols move away from LayerZero
Kraken isn't alone in making the switch. Kelp also stated that the DAO is in progress. Emigration to Chainlink's CCIP, and burned the hacker's 117,132 rETH as part of the recovery process this week.
Related: Kelp DAO eyes reopen exits after burning rsETH
Solv protocol announced On May 7, $700 million in tokenized Bitcoin was being migrated from LayerZero to CCIP as an official cross-chain infrastructure.
Meanwhile, onchain reinsurance protocol Re announced On May 8, it was transferring $475 million in total value from LayerZero to the Chainlink protocol.
It has surpassed $3 billion in TVL. Migrate to CCIP Since the kelp hack, several protocols have bridged using LayerZero. basis to MEXC
Lido, the world's largest Ethereum liquid staking protocol, also uses CCIP. Chainlink's deep defense model serves as a benchmark for chain cross-linking. He explained. In a blog post on Thursday.
Comparison of CCIP and LayerZero. Source: Lido
No response at token prices.
There was no price reaction for Chainlink's native token LINK, which remains in a bear market low around $10, down 80% from its 2021 high.
However, LayerZero's native token is down more than 30% since the April hack and is down more than 80% from its 2024 all-time high. basis That CoinGecko.
Cointelegraph reached out to LayerZero for comment, but did not receive an immediate response.
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