Kraken Shifts from LayerZero to Chainlink CCIP Amid Security Concerns
Kraken joins LayerZero exodus as it switches to Chainlink CCIP
Cointelegraph
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Kraken, a major cryptocurrency exchange, has transitioned from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP) for enhanced security. This move follows the Kelp DAO exploit in April, which raised concerns about LayerZero's security. Kraken aims to secure its wrapped tokens with Chainlink's robust infrastructure.
- 01Kraken is migrating to Chainlink CCIP as its exclusive cross-chain infrastructure for securing Kraken Wrapped Bitcoin (kBTC).
- 02The shift follows the Kelp DAO exploit in April, where approximately $292 million in tokens were stolen.
- 03LayerZero has faced scrutiny and acknowledged its security vulnerabilities, including attacks on its internal RPCs.
- 04Other protocols, including Kelp DAO and Solv Protocol, are also migrating to Chainlink CCIP, with over $3 billion in total value locked (TVL) transitioned since the exploit.
- 05LayerZero's native token ZRO has dropped over 30% since the April incident, while Chainlink's LINK token remains stable at around $10.
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Kraken has announced its decision to switch from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP) for its cross-chain infrastructure, particularly to secure Kraken Wrapped Bitcoin (kBTC) and future wrapped tokens. This shift comes in the wake of the Kelp DAO exploit in April, where approximately $292 million in liquid restaking tokens were stolen, raising significant concerns about the security of LayerZero. Kraken emphasized that Chainlink CCIP provides an enterprise-grade infrastructure with stringent security measures, including certifications and a design that is secure by default. Following this incident, several other protocols, such as Kelp DAO and Solv Protocol, have also begun migrating to CCIP, with more than $3 billion in total value locked (TVL) having transitioned since the exploit. In contrast, LayerZero's native token ZRO has seen a decline of over 30% since the hack, while Chainlink's LINK token has remained stable at around $10. This situation highlights the ongoing reevaluation of cross-chain providers in the crypto space as security becomes a paramount concern.
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