Following the KelpDAO assault, the safety of cross-chain infrastructures has as soon as once more change into a subject of dialogue within the cryptocurrency sector, and it has been reported that many protocols have moved away from the LayerZero infrastructure and switched to the Cross-Chain Interoperability Protocol (CCIP) system developed by Chainlink.
Based on current trade knowledge, roughly $4 billion price of belongings have both migrated or are within the strategy of migrating from LayerZero to Chainlink CCIP.
Following the $292 million loss ensuing from the KelpDAO assault on Could 16, scrutiny of cross-chain safety has intensified, and the DeFi protocol Lombard has change into the most recent mission to hitch the migration wave. In an announcement, the corporate introduced that after a complete inner safety evaluate, it has discontinued its use of LayerZero and migrated over $1 billion price of Bitcoin-backed belongings to the Chainlink CCIP infrastructure.
Lombard introduced it’s going to situation two Bitcoin-backed tokens, LBTC and BTC.b, whereas prioritizing asset transfers to the Solana, Etherlink, Berachain, Corn, and TAC networks. The protocol additionally acknowledged it’s going to utterly finish the usage of LayerZero on Morph and Swell.
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The corporate acknowledged that its alternative of Chainlink CCIP was based mostly on safety parts corresponding to impartial node operators, an inner price capping mechanism, and audited infrastructure. Lombard can even undertake Chainlink’s cross-chain token commonplace, supporting cross-chain asset transfers utilizing a “burn and mint” mannequin.
Kelp DAO, Solv Protocol, Re, and the cryptocurrency alternate Kraken had beforehand accomplished comparable transition processes. These transitions reportedly concerned roughly $4 billion in belongings in whole.
Chainlink Labs Director of Enterprise Growth Johann Eid acknowledged in his feedback on the matter, “We’re witnessing an ongoing wave of safe-haven migration within the trade.”
*This isn’t funding recommendation.
