Solv Protocol has said it is moving more than $700 million worth of tokenized bitcoins assets to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and deprecate LayerZero bridge support in Corn, Berachain, Rootstock, and TAC.
The migration covers SolvBTC and xSolvBTC, Solv’s wrapped bitcoin assets used in the DeFi and BTCfi markets. Solv said it made the decision after an updated security review and recent cross-chain attacks, pointing to CCIP as its standard bridging infrastructure.
Chainlink’s CCIP is a bridge that connects blockchains, allowing transfers of tokens, messages and data between different decentralized networks.
Solv’s move follows Kelp DAO’s switch from LayerZero to Chainlink after an exploit in April drained 116,500 rsETH, worth approximately $292 million, from its LayerZero-powered bridge.
Kelp and LayerZero have since blamed each other for 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 staff reviewed and approved the configuration to which it later attributed the attack.
The dispute has turned the verifier design into a real security issue for high-value cross-chain assets, as Kelp says the 1-of-1 configuration 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 that use that model.
The Solv migration gives Chainlink a second post-hack victory in cross-chain infrastructure. Kelp is moving renewed liquid ETH to you, while Solv is moving tokenized bitcoin.
Together, Kelp and Solv represent more than $2 billion in protocol asset value moving into Chainlink’s cross-chain infrastructure.
“We are talking to many teams across the industry and there is a clear and accelerating trend where protocols like Solv are migrating to Chainlink in a flight to quality reminiscent of the rapid changes during the DeFi summer,” Johann Eid, chief commercial officer at Chainlink, told CoinDesk.
“The largest protocols in the industry are realizing that they can no longer rely on cross-chain infrastructures and oracles that place responsibility on users and blame them for systemic failures,” Eid added. “By choosing CCIP, Solv gets a cross-chain infrastructure that is “secure and decentralized by default.”
Solv had already worked with Chainlink to offer real-time collateral verification for SolvBTC prices.
