The $700 million migration: Why Solv Protocol is ditching LayerZero for Chainlink
The combined migrations by Solv and Kelp shift nearly $1 billion in assets to Chainlink’s CCIP, reflecting an industry “flight to quality.”
What to know:
- Solv Protocol is moving $700M in tokenized bitcoin (SolvBTC, xSolvBTC) from the LayerZero bridge to Chainlink’s CCIP following a security review and recent cross-chain hacks.
- This follows Kelp DAO’s shift after a $292M exploit on its LayerZero bridge. LayerZero and Kelp are blaming each other over the bridge’s single-verifier setup.
- The combined migrations by Solv and Kelp shift nearly $1 billion in assets to Chainlink’s CCIP, reflecting an industry “flight to quality.”
Chainlink’s CCIP is a bridge that connect blockchains, enabling transfers of tokens, messgages and data between different decentralized networks.
Solv’s move follows Kelp DAO’s shift from LayerZero to Chainlink after an April exploit drained 116,500 rsETH, worth roughly $292 million, from its LayerZero-powered bridge.
Kelp and LayerZero have since traded blame over the setup behind the exploit. LayerZero said Kelp used a single-verifier configuration despite recommendations to adopt a multi-DVN model, while Kelp says LayerZero personnel reviewed and approved the configuration it later blamed for the attack.
The dispute has turned verifier design into a live security issue for high-value cross-chain assets as Kelp says the 1-of-1 setup was not an edge case. LayerZero says it was an application-level configuration choice and has since said it will no longer sign messages for applications using that model.
