Solv Protocol and Re Switch to Chainlink CCIP, Moving Nearly $1B Away From Layerzero

Three DeFi Protocols Pull Nearly $1B From Layerzero After $292M April Exploit

Solv Protocol announced this week that it is migrating its full tokenized bitcoin portfolio, including SolvBTC and xSolvBTC, from Layerzero to Chainlink CCIP. The determination covers astir $700 cardinal successful assets and affects span deployments connected Corn, Berachain, Rootstock, and TAC networks. Layerzero enactment connected those chains is being deprecated arsenic the migration proceeds successful phases.

“After an extended information review, Solv is deprecating its Layerzero bridges and migrating to the astir unafraid cross-chain solution successful the industry, with SolvBTC and xSolvBTC present officially powered by Chainlink CCIP crossed each supported chains,” the squad wrote.

Re (re.xyz), an onchain reinsurance protocol, made a akin call. The squad selected Chainlink CCIP arsenic the exclusive cross-chain infrastructure for reUSD, its yield-bearing stablecoin with much than $160 cardinal successful market cap. Re cited CCIP’s redundant validation by 16 oregon more autarkic node operators, autochthonal rate-limit circuit breakers, and SOC 2 Type 2 compliance arsenic the deciding factors. Protocol TVL stands supra $475 million.

Both decisions travel an April 18, 2026, exploit that drained astir 116,500 rsETH, worthy astir $292 cardinal astatine the time, from a Layerzero-powered span utilized by KelpDAO. Attackers reportedly utilized the stolen assets arsenic collateral connected Aave v3. KelpDAO attributed the breach to a 1-of-1 verifier configuration wrong Layerzero’s infrastructure, which created a azygous constituent of failure.

Layerzero disputed that framing. The institution said KelpDAO had manually selected a non-recommended single-verifier exemplary against Layerzero’s ain guidance and that it would nary longer enactment specified configurations. The nationalist quality drew renewed scrutiny to however Layerzero’s Omnichain Fungible Token modular handles verifier setup and whether default configurations connection capable protection.

Chainlink CCIP uses a antithetic model. Each span lane relies connected aggregate autarkic Decentralized Oracle Networks, with 16 oregon much security-reviewed node operators handling validation. Separate codebases negociate execution and risk, and built-in complaint limits enactment arsenic circuit breakers if anomalous transportation volumes appear. Solv noted that CCIP had already been portion of its collateral verification stack, making the migration a consolidation alternatively than a afloat replacement.

Re described the power arsenic an evident upgrade fixed what it called Chainlink’s foundational relation successful its existing infrastructure. The squad said it chose to prioritize way record, third-party audits, and organization information standards implicit velocity oregon outgo erstwhile evaluating span options successful the aftermath of caller DeFi hacks.

Huma Finance, a PayFi network, besides selected CCIP arsenic the exclusive span for its PST output product. Unlike Solv, Re, and KelpDAO, however, Huma was not migrating from an progressive Layerzero deployment. Its determination was framed arsenic a forward-looking infrastructure prime pursuing the aforesaid information reviews that prompted the different 3 protocols to act.

The combined standard of these shifts, astir $1 cardinal erstwhile counting Solv and KelpDAO alone, has strengthened Chainlink’s presumption arsenic a preferred cross-chain modular for protocols managing institutional-grade oregon high-value assets. Chainlink executives person described the infinitesimal arsenic a formation to quality, with teams seeking infrastructure that offers default protections alternatively than configurations that spot information work connected idiosyncratic operators.

“Glad to spot each the hard enactment that Chainlink has enactment into generating existent information is being recognized arsenic invaluable by much and much teams successful our industry,” Chainlink laminitis Sergey Nazarov remarked connected X. “It seems that focusing connected making the unafraid and reliable solution is what wins successful an manufacture wherever securing worth is simply a cardinal diagnostic of everyone’s product.”

Nazarov added:

“We person seen the inclination of debased prime information oracles with mediocre information being switched retired for Chainlink for galore years now, with that inclination continuing connected a regular basis.”

Holders of rsETH, SolvBTC, xSolvBTC, and reUSD are mostly unaffected during the transition. Each protocol has structured its migration to beryllium phased, with minimal required enactment from users successful astir cases.

The inclination reflects a applicable calculation by DeFi teams: erstwhile a azygous misconfiguration tin effect successful a nine-figure loss, default information architecture matters much than flexibility.