Kraken to Migrate Wrapped Bitcoin Tech to Chainlink as LayerZero Exodus Expands

Crypto speech Kraken is the latest steadfast to ditch LayerZero’s cross-chain interoperability exertion pursuing its relation successful past month’s $292 cardinal Kelp DAO exploit. 

As a result, the steadfast volition migrate its existing wrapped Bitcoin product, kBTC, to Chainlink’s cross-chain interoperability protocol (CCIP). In the future, immoderate wrapped Kraken products volition besides marque usage of Chainlink’s technology. 

“Kraken chose Chainlink CCIP due to the fact that it offers enterprise-grade infrastructure with strict information & hazard absorption requirements,” the exchange posted connected X.

Holders of the firm’s kBTC token, which is backed 1:1 by Bitcoin held successful custody by Kraken, bash not request to instrumentality immoderate enactment astatine this time. The token holds a marketplace headdress of astir $266 cardinal astatine the clip of writing. 

Kraken’s migration extends the database of large crypto firms which person announced their intentions to detach themselves from LayerZero’s cross-chain tech aft the interoperability protocol squad admitted it “made a mistake” that led to the Kelp DAO exploit. 

Prior to Kraken’s departure, Kelp DAO announced its intentions to displacement to Chainlink’s exertion and was followed by Solv Protocol, which said it would migrate the tech backing $700 cardinal worthy of Bitcoin-related assets to CCIP arsenic well. Last week, on-chain reinsurance protocol Re besides announced plans to marque the power from LayerZero to Chainlink.  

“Together, Chainlink and Kraken tin assistance accelerate the planetary adoption of crypto by unlocking inferior and organisation for each Kraken Wrapped Assets crossed DeFi,” Kraken said. 

Although the steadfast did not notation the Kelp DAO exploit, Kraken’s determination and those of the different crypto firms migrating distant from LayerZero travel aft the April 18 exploit that was aboriginal attributed to Lazarus Group, the notorious North Korean state-sponsored hacker group. 

Attackers from Lazarus were capable to drain 116,500 rsETH liquid staking tokens from Kelp DAO’s infrastructure aft "poisoning" interior RPCs utilized by LayerZero Labs, according to a postmortem from the interoperability firm. 

Last week, the protocol said nary different applications person been impacted and funds are not astatine risk.