Solv Protocol said it was moving over $700 million in tokenized bitcoin assets to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and deprecation of support for the LayerZero bridge between Corn, Berachain, Rootstock and TAC.
The migration covers SolvBTC and xSolvBTC, Solv’s wrapped bitcoin assets used in the DeFi and BTCfi markets. Solv said it made the decision after an updated security review and recent cross-chain hacks, designating CCIP as its standard bridge infrastructure.
Chainlink’s CCIP is a bridge that connects blockchains, enabling transfers of tokens, messages and data between different decentralized networks.
Solv’s move follows Kelp DAO’s move from LayerZero to Chainlink after an April exploit drained 116,500 rsETH, worth around $292 million, from its LayerZero-powered bridge.
Kelp and LayerZero have since shared responsibility for the configuration behind the exploit. LayerZero said Kelp used a single-verifier setup despite recommendations to adopt a multi-DVN model, while Kelp said LayerZero staff reviewed and approved the setup that it then blamed for the attack.
The dispute turned the verifier design into a real security issue for high-value cross-chain assets, as Kelp claims the 1-of-1 setup was not an edge case. LayerZero claims that this was an application-level configuration choice and has since stated that it will no longer sign messages for applications using this model.
Solv’s migration gives Chainlink a second post-hack victory in cross-chain infrastructure. Kelp moves reinvested liquid ETH there, while Solv moves tokenized bitcoin there.
Together, Kelp and Solv represent over $2 billion in protocol asset value scaling Chainlink’s cross-chain infrastructure.
“We are talking with many teams in the industry and there is a clear and accelerating trend that protocols like Solv are migrating to Chainlink in a flight to quality reminiscent of the rapid changes of the DeFi summer,” Johann Eid, Chainlink’s chief business officer, told CoinDesk.
“The largest protocols in the industry are realizing that they can no longer rely on cross-chain and Oracle infrastructure that shifts responsibility to users and blames them for systemic failures,” Eid added. “By choosing CCIP, Solv benefits from a “secure and decentralized by default” cross-chain infrastructure.
Solv had previously worked with Chainlink to offer real-time collateral verification for SolvBTC prices.
