Solv Protocol has said it is moving more than $700 million in tokenized bitcoin assets to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and deprecating LayerZero bridge support for Corn, Berachain, Rootstock and TAC.
The migration affects SolvBTC and xSolvBTC, Solv’s packaged bitcoin assets used in the DeFi and BTCfi markets. Solv said it made the decision following an updated security assessment and recent cross-chain hacks, designating CCIP as the default bridge infrastructure.
Chainlink’s CCIP is a bridge that connects blockchains, allowing the transfer of tokens, messages and data between different decentralized networks.
Solv’s move follows Kelp DAO’s move from LayerZero to Chainlink after an April exploit took 116,500 rsETH, worth about $292 million, from the LayerZero-powered bridge.
Kelp and LayerZero have since traded blame for the scheme 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 it later blamed for the attack.
The dispute has made verification design a current security issue for high-value cross-chain assets, as Kelp says the 1-to-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.
Solv’s migration gives Chainlink a second post-hack victory in cross-chain infrastructure. Kelp moves liquid ETH there, while Solv moves tokenized bitcoin.
Together, Kelp and Solv represent more than $2 billion in value of protocol assets moving into Chainlink’s cross-chain infrastructure.
“We speak to many teams in the industry and there is a clear and accelerating trend of protocols like Solv migrating to Chainlink in a flight to quality reminiscent of the rapid shifts seen during the DeFi summer,” Johann Eid, chief business officer at Chainlink, told CoinDesk.
“The industry’s largest protocols are realizing that they can no longer rely on cross-chain and oracle infrastructure that holds users accountable and blames them for system 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.