Oracle · Chainlink · LayerZero · Bitcoin · The Block
LayerZero initially deflected blame — arguing it had recommended Kelp to move to a more robust verification standard to require
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According to an analysis following the Kelp DAO exploit, some 47% of the applications running LayerZero tech operated using a single-verifier configuration, bolstering Kelp's argument that this was LayerZero’s default.
Key facts
- LayerZero has since begun rolling out infrastructure and operational improvements, and will no longer support 1/1 Decentralized Verifier Network configurations
- The exchange integrated LayerZero's OFT standard in 2025 to make kBTC portable across over 150 chains
- Those protocols represent a combined $2.57 billion in total value locked, a Chainlink representative told The Block
- Some security experts have blamed LayerZero for the $292 million Kelp DAO bridge exploit
Summary
Crypto exchange Kraken is deprecating its LayerZero-powered infrastructure and migrating to Chainlink to secure its Kraken Wrapped Bitcoin (kBTC) product, according to an announcement on Thursday. With this move, Kraken has become at least the fourth crypto firm or project to deprecate its LayerZero cross-chain channels following the massive Kelp DAO attack last month, which some onlookers attributed to LayerZero’s lax security standards. This includes migrations from Kelp DAO itself, Bitcoin DeFi platform Solv Protocol, and Re, an onchain reinsurance protocol. Kraken said it tapped Chainlink’s Cross-Chain Interoperability Protocol (CCIP) "because it offers enterprise-grade infrastructure with strict security & risk management requirements. Notably, CCIP requires 16 independent node operators to validate cross-chain transactions.