Lombard Finance Dumps LayerZero, Will Use Chainlink to Power $1 Billion in Bitcoin Assets
Lombard Finance, a Bitcoin DeFi firm, is replacing LayerZero technology with Chainlink’s cross-chain interoperability platform (CCIP) to enhance security following last month’s $292 million Kelp DAO exploit, which was caused by compromised LayerZero infrastructure. This change affects over $1 billion in Bitcoin-linked assets across Solana, Ethereum, and Berachain. Lombard is also discontinuing LayerZero use on Ethereum layer-2 Morph and the Swell staking protocol. The firm cites Chainlink’s secure foundation and the ability to add custom security measures, such as validation from its Security Consortium, as key reasons for the switch. Lombard will also adopt Chainlink’s Cross-Chain Token (CCT) standard for minting and burning cross-chain compatible tokens. This move aligns with broader industry shifts, as other projects with significant total value locked have also migrated from LayerZero to Chainlink after the Kelp DAO hack. Lombard’s staked Bitcoin token, LBTC, which is 1:1 backed by Bitcoin, constitutes the majority of its asset base and facilitates Bitcoin participation in DeFi across multiple blockchains.
