LayerZero · Chainlink · Bitcoin · Cointelegraph
Kraken joins LayerZero exodus as it switches to Chainlink CCIP
Compiled by KHAO Editorial — aggregated from 3 sources. See llms.txt for citation guidance.
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LayerZero has come under scrutiny since it was exploited in April, as crypto protocols reevaluate their cross-chain providers and seek safer alternatives.
Key facts
- There was no reaction in prices for Chainlink’s native token, LINK, which remains at a bear market low of around $10, down 80% from its 2021 peak
- Solv Protocol announced on May 7 that it was migrating from LayerZero to CCIP as its official cross-chain infrastructure for $700 million in tokenized Bitcoin
- However, LayerZero’s native token ZRO has declined over 30% since the April hack and is down more than 80% from its 2024 all-time high, according to CoinGecko
- LayerZero has been under scrutiny since the Kelp DAO exploit in April, in which about $292 million in liquid restaking tokens were stolen by actors suspected to be linked to North Korea’s Lazarus
Summary
Crypto exchange Kraken announced Thursday that it had changed its cross-chain provider from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol, joining several protocols that have made the move following the Kelp DAO exploit in April. Kraken said it is deprecating its existing cross-chain provider and migrating to Chainlink CCIP as its exclusive cross-chain infrastructure to secure Kraken Wrapped Bitcoin (kBTC) and all future wrapped tokens. The company added that it chose Chainlink CCIP because it “offers enterprise-grade infrastructure with strict security and risk management requirements.” These include certifications, secure-by-default design, 16 independent nodes and native rate limits. LayerZero has been under scrutiny since the Kelp DAO exploit in April, in which about $292 million in liquid restaking tokens were stolen by actors suspected to be linked to North Korea’s Lazarus Group.