The impact of the KelpDAO hack is still spreading across the DeFi space. Now, Solv Protocol has decided to move fully to Chainlink CCIP for a better DeFi security.
Solv Protocol manages more than $700 million in Bitcoin-based assets. These include SolvBTC and xSolvBTC. The platform will now use Chainlink CCIP for all cross-chain transfers. This change aims to make asset movement safer.
At the same time, Solv Protocol has stopped using LayerZero bridges. This applies to networks like Corn, Berachain, Rootstock, and TAC. The platform wants to reduce risks linked to cross-chain bridges. It now plans to use a single system with Chainlink CCIP.
Cross-chain bridges have become a weak point in DeFi. Many hacks in the past have targeted these systems. Solv Protocol reviewed different options before making this move. It chose Chainlink CCIP for its strong safety features.
The decision comes soon after the KelpDAO hack. The attack caused losses of about $292 million. Reports linked the attack to the Lazarus Group. The hack exposed serious problems in bridge systems.
KelpDAO rejected claims that the issue came from its setup. It said the system followed standard rules. The protocol also claimed that fake transactions got approved during the attack. This made the losses even bigger.
The attack also affected the wider DeFi market. Some platforms paused services linked to the hacked assets. Users became more careful about cross-chain transactions. The event raised concerns about system safety.
Chainlink CCIP is now gaining attention as a safer option. It allows token transfers with built-in checks. It also uses a decentralized system, which reduces risk. Extra features help detect and stop unusual activity.
Many DeFi platforms are now looking at Chainlink CCIP. The focus has shifted toward safety instead of speed. Developers prefer systems that offer strong protection.
This shift may help users feel more secure. Cross-chain transfers could become safer and more reliable. Developers also benefit from a ready system instead of building new bridges.
Solv Protocol’s move shows how the industry is changing. The KelpDAO hack has pushed platforms to rethink security. Chainlink CCIP is now becoming a key choice for safer DeFi growth.
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