- Solv Protocol will migrate the wrapped BTC infrastructure from LayerZero to Chainlink CCIP.
- The move followed the $292M Kelp DAO exploit tied to LayerZero-powered bridge systems.
- Solv will phase out LayerZero bridge support for Corn, Berachain, Rootstock, and TAC.
Solv Protocol is moving more than $700 million in tokenized Bitcoin infrastructure away from LayerZero after recent bridge exploits increased pressure on cross-chain security systems.
The protocol confirmed that Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will become the default cross-chain layer for SolvBTC and xSolvBTC transfers across supported networks.
As part of the migration, Solv will remove LayerZero bridge support for Corn, Berachain, Rootstock, and TAC. The company said the move followed a full review of bridge security standards after multiple recent cross-chain attacks.
Solv Protocol runs Bitcoin-focused DeFi products built around SolvBTC, a wrapped Bitcoin asset that lets users move BTC liquidity across different blockchains while earning yield.
Chief Technology Officer Will Wang said the migration was built around lowering bridge risk and improving security guarantees for users moving assets between chains.
The company described Chainlink’s CCIP as a more battle-tested infrastructure layer with stronger defense systems and institutional-grade protection.
Kelp DAO Exploit Increased Pressure on LayerZero
The migration came weeks after attackers drained roughly $292 million from infrastructure connected to Kelp DAO, which relied on LayerZero bridge technology.
Kelp DAO later confirmed plans to move its rsETH bridge systems toward Chainlink CCIP as well.
The April exploit became one of the largest bridge-related attacks of the year. Reports later showed that attackers moved stolen rsETH into Aave v3 as collateral before some funds became frozen.
LayerZero blamed the attack on North Korea’s Lazarus Group and argued that Kelp DAO used a risky single-verifier setup instead of the recommended multi-validator protection.
Kelp DAO rejected that explanation and accused LayerZero of previously approving the same verifier structure before the exploit happened.
The dispute remains unresolved. LayerZero CEO Bryan Pellegrino said Kelp moved away from safer default settings, while Kelp claimed many LayerZero applications operated with similar one-verifier systems.
Security researchers later added more pressure to the debate. OpenZeppelin said there was no public proof showing a direct smart contract failure in the Kelp DAO exploit. Instead, the company said the issue appeared tied to bridge operations, integration systems, and message verification infrastructure.
It is important to note that Solv did not directly blame LayerZero in its migration announcement. The company instead pointed to “recent cross-chain hacks” and broader security reviews across the industry.
Chainlink Gains More Ground in Cross-Chain Infrastructure
Chainlink Labs said Solv’s migration reflects a wider trend inside decentralized finance, where protocols are choosing infrastructure providers with stronger security guarantees.
Chief Business Officer Johann Eid said Chainlink CCIP now plays an increasingly important role in securing large cross-chain asset transfers.
The migration also increases Chainlink’s position inside Bitcoin-based DeFi markets, where wrapped BTC systems depend heavily on secure communication between multiple blockchains.
Related: Frozen Kelp DAO ETH on Arbitrum Sparks US Legal Dispute Over DPRK Claims
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Source: https://coinedition.com/solv-protocol-moves-700m-in-tokenized-bitcoin-infrastructure-from-layerzero-to-chainlink/
