Chainlink continues to strengthen its position in decentralized finance interoperability as Bitcoin focused DeFi platform Solv Protocol announced a full migration to the Chainlink Cross Chain Interoperability Protocol known as CCIP.
The transition is part of Solv’s revised security strategy for handling cross chain transactions and will cover more than $700 million worth of Bitcoin related assets tied to SolvBTC and xSolvBTC.
Solv Protocol Drops LayerZero Bridging Support
As part of the migration process, Solv confirmed it will end support for LayerZero bridging across SolvBTC and xSolvBTC on Corn, Berachain, Rootstock, and TAC networks.
The protocol explained that the decision is aimed at reducing risks within its current bridging infrastructure while standardizing operations around Chainlink CCIP.
Solv emphasized that cross chain bridges remain one of the most vulnerable areas within decentralized finance, adding that weaknesses in bridge infrastructure can introduce major systemic risks across the broader DeFi ecosystem. The company also stated that it conducted a comprehensive reassessment of available interoperability solutions before ultimately selecting Chainlink CCIP.
Commenting on the migration, Johann Eid said Chainlink is proud to support Solv’s move to CCIP as the standard method for securely transferring wrapped Bitcoin assets across blockchains. He added that the migration reflects a larger industry trend in which leading DeFi protocols are increasingly adopting Chainlink to achieve the security standards needed for mainstream blockchain adoption.
LayerZero Exploit Continues To Impact DeFi Ecosystem
Solv Protocol’s migration follows the major April 18 security breach involving KelpDAO, which relied on LayerZero powered infrastructure. The exploit reportedly resulted in losses estimated at around $292 million.
According to public statements from KelpDAO, the attack was allegedly connected to North Korea’s Lazarus Group and exploited vulnerabilities associated with LayerZero infrastructure.
KelpDAO disputed claims made by LayerZero Labs that the exploit was caused by a configuration mistake unique to KelpDAO. Instead, the protocol argued that its implementation followed LayerZero’s official documentation and reflected a deployment structure commonly used throughout the ecosystem.
The protocol further alleged that LayerZero’s decentralized verifier signed forged transactions exceeding $100 million before KelpDAO halted its contracts to prevent further losses.
In its postmortem report, LayerZero later acknowledged that attackers gained access to RPC endpoints connected to its decentralized verifier network and compromised several nodes during what the company described as an RPC spoofing attack.
Following the incident, KelpDAO announced plans to abandon LayerZero’s OFT standard and migrate rsETH to Chainlink’s CCIP framework.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
