LayerZero · Chainlink · Bitcoin · Decrypt
Kraken to Migrate Wrapped Bitcoin Tech to Chainlink as LayerZero Exodus Scales up
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Crypto exchange Kraken is the latest firm to ditch LayerZero’s cross-chain interoperability technology following its role in last month’s $292 million Kelp DAO exploit.
Key facts
- Before Kraken’s departure, Kelp DAO announced its intentions to shift to Chainlink’s technology and was followed by Solv Protocol, which said it would migrate the tech backing $700 million worth
- Crypto exchange Kraken is the latest firm to ditch LayerZero’s cross-chain interoperability technology following its role in last month’s $292 million Kelp DAO exploit
- Holders of the firm’s kBTC token, which is backed 1:1 by Bitcoin held in custody by Kraken, do not need to take any action now
- Although the firm did not mention the Kelp DAO exploit, Kraken’s decision and those of the other crypto firms migrating away from LayerZero come after the April 18 exploit that was later attributed
Summary
Kraken will migrate its wrapped Bitcoin product, kBTC, from LayerZero to Chainlink's interoperability protocol. The asset maintains a market cap of more than $260 million, and Kraken said it will use Chainlink for future wrapped assets, as well. LayerZero admitted it "made a mistake" with Kelp DAO's setup, which was exploited for $292 million in April. As a result, the firm will migrate its existing wrapped Bitcoin product, kBTC, to Chainlink’s cross-chain interoperability protocol (CCIP).