Solv Protocol Switches to Chainlink for $700 Million Tokenized Bitcoin Infrastructure

Solv Protocol Replaces LayerZero After Security Concerns

Bitcoin focused DeFi platform Solv Protocol announced it will migrate its cross chain infrastructure from LayerZero to Chainlink’s Cross Chain Interoperability Protocol (CCIP), covering more than $700 million in tokenized Bitcoin assets.

The platform said the decision was driven primarily by security concerns following recent industry exploits tied to cross-chain bridges. Solv plans to phase out LayerZero support for SolvBTC and xSolvBTC across networks including Corn, Berachain, Rootstock and TAC.

According to the project, Chainlink CCIP was selected because of its “secure-by-default” framework, built-in risk controls and active monitoring systems designed to reduce vulnerabilities in decentralized finance infrastructure.

Kelp DAO Exploit Intensifies Bridge Security Debate

The migration follows a major $292 million exploit involving Kelp DAO, which used LayerZero powered bridge technology. Attackers reportedly exploited a single-verifier bridge configuration, resulting in the loss of more than 116,000 rsETH tokens and creating substantial bad debt exposure across DeFi protocols.

The incident triggered public disagreement between LayerZero and Kelp DAO regarding responsibility for the bridge setup and security practices.

Solv stated that repeated bridge-related exploits across the crypto industry have highlighted the need for stronger interoperability security standards as tokenized Bitcoin adoption continues growing across decentralized finance markets.