KelpDAO Hack Fallout to Chainlink CCIP migration pushes another DeFi protocol
Chainlink CCIP just confirmed another major DeFi migration.
Bitcoin-focused DeFi platform Solv has announced that it will be moving to the Chainlink Cross-Chain Interoperability Protocol (CCIP) as part of an updated security strategy for on-chain transactions.
The move covers more than $700 million in Bitcoin-related assets on SolvBTC and xSolvBTC.
Solv ends support for the LayerZero bridge
As part of the transition, Solv said it will end LayerZero bridge support for SolvBTC and xSolvBTC on Maize, Rachain, Rootstock and TAC. He explained that the platform reduces risk exposure to the existing bridge stack and standardizes its infrastructure on Chainlink CCIP.
Solv described cross-chain bridges as one of the most vulnerable areas in decentralized finance, noting that weaknesses in the bridge infrastructure could pose significant systemic risk to the sector. The platform confirmed that Chainlink had conducted a thorough review of available cross-chain solutions before selecting CCIP.
Commenting on the development, Chainlink Labs Chief Business Officer Johan Ed
“We are proud to work with the Solv team and support their migration to Chainlink CCIP, a way for their capped Bitcoin assets to be securely transferred on-chain. Solv's migration to CCIP reflects a broader shift in the DeFi industry, embracing Chainlink to deliver the highest level of security needed to bring the next billion users on-chain.”
The fall of the layer zero violation becomes stronger
Solov Protocol's decision to move its cross-chain infrastructure to Chainlink comes weeks after the massive April 18 exploit of Layer Zero-powered KelpDAO costing $292 million. An attacker allegedly linked to North Korea's Lazarus group exploited vulnerabilities in LayerZero's infrastructure, according to Kelpdao's public disclosures.
The DeFi protocol claims from LayerZero Labs that the breach stems from a configuration issue unique to KelpDAO. Instead, Kelp argues that the setup follows LayerZero's official documentation and reflects the standard deployment model used by many applications on the ecosystem.
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Kelp claims that LayerZero's DVN signed false transactions worth more than $100 million before the protocol suspended the contract and caused further losses. LayerZero later admitted in a postmortem that attackers accessed the RPC endpoints connected to DVN and compromised several nodes during what it described as an RPC blasting attack.
Following the exploit, KelpDAO announced plans to migrate from the LayerZero OFT standard and rETH to the Chainlink CCIP framework.
