Bitcoin-focused DeFi platform Solv Protocol has decided to discontinue support for LayerZero bridges and adopt Chainlink's Cross-Chain Interoperability Protocol (CCIP) as its primary interoperability infrastructure. The shift reflects growing unease over bridge security across decentralized finance, especially after the $292 million Kelp DAO exploit exposed critical vulnerabilities.
Solv confirmed it will phase out LayerZero bridge support for SolvBTC and xSolvBTC on networks including Corn, Berachain, Rootstock, and TAC. Chainlink CCIP will now handle over $700 million in cross-chain assets. The team cited recent industry developments as the catalyst for reassessing its bridge architecture, noting that CCIP offers stronger protections through proactive monitoring and a security-by-default design.
Solv emphasized that bridge infrastructure remains one of the most sensitive areas in DeFi, as cross-chain failures can trigger broader market risks. Repeated security incidents have intensified demand for stricter interoperability standards.
Kelp DAO Exploit Exposes LayerZero's Single-Verifier Flaw
LayerZero's security reputation took a hit after the Kelp DAO bridge attack resulted in losses of $292 million (approximately 116,500 rsETH tokens), with reports linking the hack to North Korea's Lazarus Group. The exploit leveraged a single-verifier bridge configuration (a 1-of-1 decentralized verifier setup). LayerZero claimed it had warned against such configurations, but Kelp DAO countered that LayerZero initially recommended the same structure during onboarding. Kelp DAO revealed that nearly half of the applications on LayerZero used similar verifier setups. Kelp has since confirmed plans to migrate to Chainlink infrastructure.
Although Solv did not directly reference the Kelp incident, the timing of its announcement underscores broader concerns about bridge security. Chainlink's interoperability services are increasingly attracting projects seeking robust risk management.
Solv Itself Hacked Earlier This Year, Adding Urgency to Security Upgrade
Solv Protocol suffered its own security breach in early 2026, when attackers drained nearly $2.7 million from one of its Bitcoin Reserve Offering vaults. The incident heightened attention on the platform's security posture and reinforced industry fears about DeFi infrastructure. Beyond strengthening bridge security, Solv's migration reflects growing competition among interoperability providers catering to both institutional and retail DeFi platforms. As cross-chain threats persist, infrastructure providers face mounting pressure to improve decentralization standards and verification mechanisms across blockchain ecosystems.