According to the Data, an Altcoin Network Is Being Abandoned Following Recent Events

Following the KelpDAO attack, the security of cross-chain infrastructures has once again become a topic of discussion in the cryptocurrency sector, and it has been reported that many protocols have moved away from the LayerZero infrastructure and switched to the Cross-Chain Interoperability Protocol (CCIP) system developed by Chainlink.

According to recent industry data, approximately $4 billion worth of assets have either migrated or are in the process of migrating from LayerZero to Chainlink CCIP.

Following the $292 million loss resulting from the KelpDAO attack on May 16, scrutiny of cross-chain security has intensified, and the DeFi protocol Lombard has become the latest project to join the migration wave. In a statement, the company announced that after a comprehensive internal security review, it has discontinued its use of LayerZero and migrated over $1 billion worth of Bitcoin-backed assets to the Chainlink CCIP infrastructure.

Lombard announced it will issue two Bitcoin-backed tokens, LBTC and BTC.b, while prioritizing asset transfers to the Solana, Etherlink, Berachain, Corn, and TAC networks. The protocol also stated it will completely end the use of LayerZero on Morph and Swell.

The company stated that its choice of Chainlink CCIP was based on security elements such as independent node operators, an internal rate capping mechanism, and audited infrastructure. Lombard will also adopt Chainlink’s cross-chain token standard, supporting cross-chain asset transfers using a “burn and mint” model.

Kelp DAO, Solv Protocol, Re, and the cryptocurrency exchange Kraken had previously completed similar transition processes. These transitions reportedly involved approximately $4 billion in assets in total.

Chainlink Labs Director of Business Development Johann Eid stated in his comments on the matter, “We are witnessing an ongoing wave of safe-haven migration in the industry.”

*This is not investment advice.