KelpDAO Hack Fallout Pushes Another DeFi Protocol Toward Chainlink CCIP Migration
Bitcoin-focused DeFi platform Solv Protocol introduced that it’s totally migrating to the Chainlink Cross-Chain Interoperability Protocol (CCIP) as a part of its up to date safety technique for cross-chain transactions.
The transfer will cowl greater than $700 million in Bitcoin-related property throughout SolvBTC and xSolvBTC.
Solv Ends LayerZero Bridging Support
As a part of the transition, Solv said it should discontinue LayerZero bridging help for SolvBTC and xSolvBTC on Corn, Berachain, Rootstock, and TAC. The platform defined that it’s decreasing danger publicity on its current bridging stack and standardizing its infrastructure on Chainlink CCIP.
Solv described cross-chain bridges as one of many highest-risk areas in decentralized finance, whereas noting that vulnerabilities in bridge infrastructure can create important systemic dangers for the sector. The platform additionally confirmed finishing up a whole up to date evaluate of obtainable cross-chain interoperability options earlier than choosing Chainlink CCIP.
Commenting on the event, Chainlink Labs’ Chief Business Officer, Johann Eid, stated,
“We are proud to work with the Solv group and help their migration to Chainlink CCIP because the standardized approach that their wrapped Bitcoin property are securely transferred cross-chain. Solv’s migration to CCIP displays a broader shift throughout the DeFi business of main protocols adopting Chainlink to ship the very best stage of safety required to carry the following billion customers onchain.”
LayerZero Breach Fallout Deepens
Solv Protocol’s determination emigrate its cross-chain infrastructure to Chainlink comes weeks after the huge 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, in response to KelpDAO’s public statements.
The DeFi protocol pushed again in opposition to claims from LayerZero Labs that the breach stemmed from a configuration subject distinctive to KelpDAO. Instead, Kelp argued that the setup adopted LayerZero’s official documentation and mirrored a normal deployment mannequin utilized by many purposes throughout the ecosystem.
Kelp additional claimed that LayerZero’s DVN signed solid transactions price greater than $100 million earlier than the protocol paused its contracts and stopped further losses. LayerZero later acknowledged in its postmortem that attackers gained entry to RPC endpoints linked to its DVN and compromised a number of nodes throughout what it described as an RPC spoofing assault.
Following the exploit, KelpDAO announced plans to maneuver away from LayerZero’s OFT commonplace and transition rsETH to Chainlink’s CCIP framework.
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