Lombard Finance is divesting from LayerZero, and will use Chainlink to operate $1 billion worth of Bitcoin assets

Bitcoin decentralized finance (decentralized finance)Decentralized finance) Lombard Finance will replace its LayerZero technology with Chainlink’s Cross-Chain Interoperability Platform (CCIP), following a comprehensive review of its Bitcoin asset technology stack in the wake of last month’s crisis. Kelp DAO exploit worth $292 million.

This move comes one day later Likewise, cryptocurrency exchange Kraken has chosen to use Chainlink CCIP To run Bitcoin token wrapped in kBTC, instead of LayerZero.

“This decision prioritizes the safety and security of all Lombard users and reflects our commitment to maintaining the security record we have established since day one, zero security incidents and 100% uptime,” Lombard said. Published on X.

The move will affect more than $1 billion of Lombard’s assets tied to Bitcoin Solana, Ethereumand Pershin. The company will also stop using LayerZero technology on Ethereum Layer 2 network The transfer and signature protocol is bloated.

“With CCIP, we not only benefit from its secure foundation by default, but also the ability to configure additional security layers on top,” the company said.

“This includes our security federation validating transactions as an additional certificate,” she added, noting that it enables the company to enforce its own cross-chain transfer rules.

Together, Lombard BTC (BTC.B) and Lombard Staked BTC (LBTC) account for more than $1 billion in market capitalization, of which $816 million belongs to staked Bitcoin assets, LBTC. This token acts as a liquid storage token and is backed 1:1 by Bitcoin, unlocking the best crypto assets for use in DeFi protocols across multiple blockchains.

In addition to the move to Chainlink’s CCIP, the company is also adopting Chainlink’s Cross-Chain Token (CCT) standard to mint and burn new tokens that are natively compatible across chains.

The company’s decision to leave LayerZero comes after the interoperability company acknowledged this “He made a mistake” Regarding the April Kelp DAO exploit. In a post-mortem report, the company said it had created an unnecessary risk that it “simply did not see” with its internal configurations. The company’s internal RPCs were “poisoned” by North Korean hackers, resulting in the loss of $292 million worth of assets from Kelp DAO infrastructure.

Since that time, several cryptocurrency projects representing billions of dollars in Total Value Locked (TVL) have moved away from LayerZero technology in favor of Chainlink, including assets from SOLV protocolAnd Re and Kelp DAO.