Solv migrates $700M tokenized BTC from LayerZero to CCIP

Solv Protocol announced it will migrate its $700 million tokenized Bitcoin portfolio from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) following an updated security review and recent cross-chain attacks. The protocol will remove LayerZero bridging support for SolvBTC and xSolvBTC on Corn, Berachain, Rootstock and TAC and adopt CCIP across its supported chains.

Solv manages more than $611 million in total value locked across Bitcoin, Ethereum, BSC and other chains. The tokenized Bitcoin holdings being moved are valued at roughly $700 million.

The announcement came days after KelpDAO confirmed its own migration and published Telegram screenshots that it says show a LayerZero team member writing “No problem on using defaults either” during discussions about Kelp’s bridge configuration. LayerZero founder Bryan Pellegrino wrote on X that those claims are “completely untrue” and added that Kelp “deployed multiDVN and then manually downgraded to a 1/1” verifier setup.

A 1-of-1 DVN configuration allows a single verification signature to authorize cross-chain transfers. After an April 18 exploit that drained about 116,500 rsETH-roughly 18% of liquid restaked tokens-LayerZero banned 1-of-1 DVN setups and has urged integrations to move away from that configuration.

The April incident affected several protocols. Aave’s total value locked dropped by more than $13 billion within days and the protocol reported about $177 million in bad-debt exposure before recovery actions. LayerZero pledged 10,000 ETH to a recovery fund. Arbitrum’s Security Council froze 30,766 ETH from wallets tied to the attacker. The legal status of some frozen funds is contested; U.S. claimants have sought attachment and at least one protocol has taken legal steps to recover assets.

Chainlink’s CCIP runs three distinct oracle networks per cross-chain lane and includes a separate risk-management network built by a different team in a different programming language. Chainlink founder Sergey Nazarov described the design as combining separate oracle networks with an independent risk layer. Chainlink Labs’ chief business officer Johann Eid wrote that Solv’s migration “reflects a broader shift across the DeFi industry of leading protocols adopting Chainlink to deliver the highest level of security required to bring the next billion users on-chain.”

In its announcement, Solv’s chief technology officer Will Wang wrote, “Security is the foundation of everything we build at Solv, and our migration to Chainlink CCIP reinforces that commitment at the highest level.”

DefiLlama data show LayerZero collected about $197,000 in fees over the past 30 days. LayerZero’s native token traded near $1.48, down modestly over 24 hours.