The decision to relocate more than $700 million in tokenized bitcoin assets, including SolvBTC and xSolvBTC, from the LayerZero bridge to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has been announced by Solv Protocol. This move affects assets on Corn, Berachain, Rootstock, and TAC networks, following a recent security review and instances of cross-chain hacks. The CCIP serves as a bridge that facilitates the transfer of tokens, messages, and data between various decentralized blockchains.
Solv’s transition echoes Kelp DAO’s earlier migration from LayerZero to Chainlink after an April attack resulted in the loss of 116,500 rsETH ($292 million) from its LayerZero-integrated bridge. The ensuing blame game involved claims by LayerZero that Kelp used a single-verifier setup against recommendations for a multi-DVN model, while Kelp countered by stating LayerZero had approved this configuration.
The argument has highlighted the security vulnerabilities associated with verifier designs for high-value cross-chain assets. Kelp emphasized that its 1-of-1 configuration was standard practice, whereas LayerZero maintained it was an application-level decision and now refuses to sign messages for such applications.
Solv’s migration marks a second victory for Chainlink in the post-hack landscape of cross-chain infrastructure. It follows Kelp’s shift of liquid restaked ETH to Chainlink. Combined, Solv and Kelp are steering over $2 billion worth of protocol assets toward Chainlink’s platform.
Johann Eid, Chainlink’s chief business officer, commented on CoinDesk about the industry trend where protocols like Solv are choosing Chainlink, citing a shift akin to movements during DeFi summer. He highlighted that major protocols are recognizing the risks associated with cross-chain and oracle infrastructures that transfer liability to users in case of failures.
Eid emphasized that by selecting CCIP, Solv benefits from an infrastructure inherently secure and decentralized. Prior collaborations between Solv and Chainlink had already included real-time collateral verification for SolvBTC pricing.