Lombard Finance Dumps LayerZero, Will Use Chainlink to Power $1 Billion in Bitcoin Assets

Bitcoin decentralized finance (DeFi) agency Lombard Finance will exchange LayerZero know-how with Chainlink’s cross-chain interoperability platform (CCIP), following an in depth overview of its Bitcoin asset tech stack within the wake of final month’s $292 million Kelp DAO exploit. 

The transfer comes sooner or later after crypto exchange Kraken similarly opted for Chainlink CCIP to energy its kBTC wrapped Bitcoin token, as an alternative of LayerZero.

“This resolution prioritizes the protection and safety of all Lombard customers and displays our dedication to sustaining the safety report we have constructed since day one, zero safety incidents and 100% uptime,” Lombard posted on X. 

The transfer will influence greater than $1 billion in Lombard’s Bitcoin-linked belongings throughout Solana, Ethereum, and Berachain. The agency will even discontinue use of LayerZero know-how on Ethereum layer-2 network Morph and staking protocol Swell.

“With CCIP, we not solely profit from its secure-by-default basis, but additionally the flexibility to configure extra safety layers on high,” the agency stated. 

“This consists of having our Safety Consortium validate transactions as an extra attestation,” it added, noting that it allows the agency to implement its personal switch guidelines throughout chains.

Lombard BTC (BTC.B) and Lombard Staked BTC (LBTC) collectively make up greater than $1 billion in market cap, $816 million of which belongs to its staked Bitcoin asset, LBTC. That token acts like a liquid staking token and is 1:1 backed with Bitcoin, unlocking the highest crypto asset to be used in DeFi protocols throughout a number of blockchains.

Along with migrating to Chainlink’s CCIP, the agency can also be adopting Chainlink’s Cross-Chain Token (CCT) commonplace for minting and burning new tokens which are natively cross-chain suitable.

The agency’s resolution to depart LayerZero comes after the interoperability agency admitted it “made a mistake” regarding the April Kelp DAO exploit. In a postmortem report, the agency stated it created an pointless danger that it “merely didn’t see” with its inside configurations. The agency’s inside RPCs have been “poisoned” by North Korean hackers, resulting in the lack of $292 million price of belongings from Kelp DAO infrastructure. 

Since that point, a number of crypto initiatives representing billions of {dollars}’ price of whole worth locked (TVL) have migrated away from LayerZero know-how in favor of Chainlink, together with belongings from Solv Protocol, Re, and Kelp DAO.