Lombard Finance, a Bitcoin decentralized finance firm, is moving its assets off LayerZero technology in favor of Chainlink's Cross-Chain Interoperability Protocol (CCIP). The decision follows a comprehensive review of its tech stack after the $292 million Kelp DAO exploit last month.
The migration affects more than $1 billion in Lombard's Bitcoin-linked assets across Solana, Ethereum, and Berachain. The firm will also discontinue use of LayerZero on Ethereum layer-2 Morph and staking protocol Swell.
Lombard stated: "This decision prioritizes the safety and security of all Lombard users and reflects our commitment to the security record we've maintained since day 1: 0 security incidents, and 100% uptime."
In addition to adopting CCIP, Lombard is integrating Chainlink's Cross-Chain Token standard for minting and burning natively cross-chain compatible tokens.
The move follows a similar decision by crypto exchange Kraken and comes after LayerZero admitted a mistake in its internal configurations that allowed North Korean hackers to exploit Kelp DAO. Multiple other projects representing billions in total value locked have also migrated to Chainlink.