TLDR
- Solv Protocol will migrate $700 million in tokenized bitcoin to Chainlink CCIP for cross-chain transfers.
- The platform will phase out LayerZero support for SolvBTC and xSolvBTC across multiple blockchain networks.
- Solv selected Chainlink after reviewing bridge security following recent industry exploits.
- The decision follows a $292 million exploit involving a LayerZero-powered bridge used by Kelp DAO.
- Kelp DAO confirmed it will also replace LayerZero with Chainlink as its cross-chain provider.
Solv Protocol confirmed it will replace LayerZero with Chainlink for cross-chain transfers tied to $700 million in tokenized bitcoin. The team said it will phase out LayerZero support for SolvBTC and xSolvBTC across several networks. The decision follows a recent $292 million exploit linked to a LayerZero-powered bridge.
Chainlink selected as new cross-chain provider
Solv Protocol said it will end LayerZero bridging for SolvBTC and xSolvBTC on Corn, Berachain, Rootstock, and TAC. The platform named Chainlink’s Cross-Chain Interoperability Protocol as its official infrastructure for cross-chain operations. The team stated that CCIP will secure more than $700 million in assets.
Solv explained that it reviewed its bridge providers after recent industry events. The team wrote, “CCIP provided the strongest security assurances through its secure-by-default architecture.” It added that CCIP offers native risk controls and proactive monitoring.
The protocol described CCIP as the “gold standard” for decentralized interoperability. It also stated that the White House recognizes CCIP as critical digital asset infrastructure. Solv confirmed it will complete the migration in phases.
LayerZero exploit prompts broader migration
Solv’s move follows a $292 million exploit on Kelp DAO, which used LayerZero infrastructure. An attacker drained 116,500 rsETH through a single-verifier Omnichain Fungible Token bridge. Reports linked the attack to North Korea’s Lazarus Group.
The exploit created bad debt on the Aave protocol after the drained assets circulated. LayerZero and Kelp DAO later disputed responsibility for the breach. LayerZero said it warned against a 1-of-1 decentralized verifier network configuration.
Kelp DAO responded that LayerZero recommended the single-verifier setup during onboarding. The DAO stated that 47% of LayerZero applications use that configuration. Earlier this week, Kelp DAO confirmed it will also migrate to Chainlink.
Solv did not reference the Kelp incident directly in its announcement. However, it said it chose a provider that meets higher security standards. The team wrote, “Cross-chain bridges remain one of the most sensitive and high-risk areas in DeFi.”
Solv added that insecure bridges can create systemic risks across decentralized finance. It stated that recurring security incidents reinforced the need for stronger decentralization. The platform said it requires interoperability solutions with robust security design.
Solv itself faced an exploit in March that affected one of its Bitcoin Reserve Offerings vaults. Attackers drained about $2.7 million from the BRO token vault. The team disclosed the incident and addressed the loss at that time.
The latest migration centers on securing tokenized bitcoin assets across multiple chains. Solv confirmed that CCIP will serve as its standard bridge infrastructure going forward. The company has begun implementing the transition across supported networks.
The post Chainlink Wins $700M Bitcoin Migration From Solv Protocol appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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