After “KelpDAO” was hacked: the new protocol abandoned “LayerZero” and switched to “Chainlink”

The “Solv Protocol” platform, which specializes in Bitcoin-pegged decentralized finance, has announced its full transition to the “Chainlink CCIP” protocol, a move aimed at enhancing security and reducing risks associated with cross-bridges.

The transition includes more than $700 million in Bitcoin-related assets, including SolvBTC and xSolvBTC, while discontinuing support for LayerZero-based bridges across multiple networks.

Confirming that bridges between networks are one of the most critical weaknesses in the DeFi space, the platform conducted a comprehensive review of available connectivity solutions before choosing “Chainlink CCIP” as a unified solution for its infrastructure.

Prior to this, the massive “KelpDAO” hack in April caused an estimated $292 million in losses due to a vulnerability related to the “LayerZero” infrastructure.

Although LayerZero denies that the problem is caused by its basic design, the incident has prompted several projects to re-evaluate their reliance on existing bridges and increasingly favor the use of safer solutions such as CCIP.

KelpDAO itself later announced its intention to abandon the “OFT” standard for “LayerZero” and move to a “Chainlink” architecture, signaling an escalating loss of trust following the hack.

Observers believe these moves could represent the beginning of a broader shift toward more secure, stable interoperability solutions in the decentralized finance space.

Also read:

Important indicators of the XRP currency hit new lows since 2021… Will the selling pressure decrease?

Return of fear over Bitcoin sparks concern…are markets approaching a new peak?