Lombard Finance Dumps LayerZero, Will Use Chainlink to Power $1 Billion in Bitcoin Assets

Bitcoin decentralized concern (DeFi) steadfast Lombard Finance volition regenerate LayerZero exertion with Chainlink’s cross-chain interoperability level (CCIP), pursuing an extended reappraisal of its Bitcoin plus tech stack successful the aftermath of past month’s $292 cardinal Kelp DAO exploit. 

The determination comes 1 time aft crypto speech Kraken likewise opted for Chainlink CCIP to powerfulness its kBTC wrapped Bitcoin token, alternatively of LayerZero.

“This determination prioritizes the information and information of each Lombard users and reflects our committedness to maintaining the information grounds we've built since time one, zero information incidents and 100% uptime,” Lombard posted connected X. 

The determination volition interaction much than $1 cardinal successful Lombard’s Bitcoin-linked assets crossed Solana, Ethereum, and Berachain. The steadfast volition besides discontinue usage of LayerZero exertion connected Ethereum layer-2 network Morph and staking protocol Swell.

“With CCIP, we not lone payment from its secure-by-default foundation, but besides the quality to configure further information layers connected top,” the steadfast said. 

“This includes having our Security Consortium validate transactions arsenic an further attestation,” it added, noting that it enables the steadfast to enforce its ain transportation rules crossed chains.

Lombard BTC (BTC.B) and Lombard Staked BTC (LBTC) collectively marque up much than $1 cardinal successful marketplace cap, $816 cardinal of which belongs to its staked Bitcoin asset, LBTC. That token acts similar a liquid staking token and is 1:1 backed with Bitcoin, unlocking the apical crypto plus for usage successful DeFi protocols crossed aggregate blockchains.

In summation to migrating to Chainlink’s CCIP, the steadfast is besides adopting Chainlink’s Cross-Chain Token (CCT) modular for minting and burning caller tokens that are natively cross-chain compatible.

The firm’s determination to permission LayerZero comes aft the interoperability steadfast admitted it “made a mistake” successful regards to the April Kelp DAO exploit. In a postmortem report, the steadfast said it created an unnecessary hazard that it “simply didn’t see” with its interior configurations. The firm’s interior RPCs were “poisoned” by North Korean hackers, starring to the nonaccomplishment of $292 cardinal worthy of assets from Kelp DAO infrastructure. 

Since that time, aggregate crypto projects representing billions of dollars’ worthy of full worth locked (TVL) person migrated distant from LayerZero exertion successful favour of Chainlink, including assets from Solv Protocol, Re, and Kelp DAO.