In short
- Lombard Finance is the latest company to divest its assets from LayerZero technology in favor of Chainlink.
- The company did an internal research on its technology, and chose Chainlink after using Kelp DAO.
- Lombard’s assets generate more than $1 billion in Bitcoin-backed tokens.
Bitcoin Decentralized Finance (DeFi) firm Lombard Finance will replace LayerZero’s technology with Chainlink’s on-chain communication platform (CCIP), following a thorough review of its Bitcoin asset tech last month. $292 million Kelp DAO takes advantage.
The move comes a day later crypto exchange Kraken similarly chose Chainlink CCIP to power his kBTC wrapped Bitcoin token, instead of LayerZero.
“This proposal prioritizes the safety and security of all Lombard users and demonstrates our commitment to maintaining the safety record we’ve built since day one, zero security incidents and 100% uptime,” Lombard. written on X.
The move will affect more than $1 billion in Lombard’s Bitcoin-linked assets across the board Solana, Ethereumand Berachain. The company will also stop using LayerZero technology on Ethereum network-2 Morph is a staking protocol Growth.
“With CCIP, we not only benefit from its secure base, but also the ability to configure other security layers on top,” the company said.
“This includes having our Security Consortium verify the transaction as additional evidence,” it added, noting that it would help the company enforce its on-chain transfer rules.
Lombard BTC (BTC.B) and Lombard Staked BTC (LBTC) together make up more than $1 billion in market cap, $816 million of which is in the value of the Bitcoin asset, LBTC. That token acts as a liquid token and is 1:1 backed by Bitcoin, opening up the advanced crypto economy for use in DeFi protocols across multiple blockchains.
In addition to moving to Chainlink’s CCIP, the company is also using Chainlink’s Cross-Chain Token (CCT) standard to create and burn new tokens that are compatible in nature.
The company’s decision to leave LayerZero comes after the company admitted “he made a mistake” regarding the April Kelp DAO project. In a postmortem report, the company said it had created an unnecessary risk that it “didn’t see” with its internal layout. The company’s internal RPCs were “fired” by North Korean hackers, which resulted in $292 million worth of assets from the Kelp DAO infrastructure.
Since then, a number of crypto projects representing billions of dollars of closed loopholes (TVL) have switched to LayerZero technology in favor of Chainlink, including assets from. Solve ProtocolRe, and Kelp DAO.
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