Kraken will migrate its wrapped Bitcoin product, kBTC, from LayerZero to Chainlink’s interoperability protocol.
The asset maintains a market cap of greater than $260 million, and Kraken mentioned it can use Chainlink for future wrapped belongings, as effectively.
LayerZero admitted it “made a mistake” with Kelp DAO’s setup, which was exploited for $292 million in April.
Crypto trade Kraken is the newest agency to ditch LayerZero’s cross-chain interoperability expertise following its function in final month’s $292 million Kelp DAO exploit.
In consequence, the agency will migrate its current wrapped Bitcoin product, kBTC, to Chainlink’s cross-chain interoperability protocol (CCIP). Sooner or later, any wrapped Kraken merchandise can even make use of Chainlink’s expertise.
“Kraken selected Chainlink CCIP as a result of it gives enterprise-grade infrastructure with strict safety & danger administration necessities,” the trade posted on X.
Holders of the agency’s kBTC token, which is backed 1:1 by Bitcoin held in custody by Kraken, don’t must take any motion right now. The token holds a market cap of round $266 million on the time of writing.
Kraken is deprecating its current cross-chain supplier and migrating to @Chainlink CCIP as its unique cross-chain infra to safe Kraken Wrapped Bitcoin (kBTC) & all future Kraken Wrapped Belongings.
Kraken selected Chainlink CCIP as a result of it gives enterprise-grade infrastructure…
Kraken’s migration extends the record of main crypto companies which have introduced their intentions to detach themselves from LayerZero’s cross-chain tech after the interoperability protocol workforce admitted it “made a mistake” that led to the Kelp DAO exploit.
Previous to Kraken’s departure, Kelp DAO introduced its intentions to shift to Chainlink’s expertise and was adopted by Solv Protocol, which mentioned it might migrate the tech backing $700 million price of Bitcoin-related belongings to CCIP as effectively. Final week, on-chain reinsurance protocol Re additionally introduced plans to make the swap from LayerZero to Chainlink.
“Collectively, Chainlink and Kraken can assist speed up the worldwide adoption of crypto by unlocking utility and distribution for all Kraken Wrapped Belongings throughout DeFi,” Kraken mentioned.
Though the agency didn’t point out the Kelp DAO exploit, Kraken’s resolution and people of the opposite crypto companies migrating away from LayerZero come after the April 18 exploit that was later attributed to Lazarus Group, the infamous North Korean state-sponsored hacker group.
Attackers from Lazarus had been in a position to drain 116,500 rsETH liquid staking tokens from Kelp DAO’s infrastructure after “poisoning” inner RPCs utilized by LayerZero Labs, in response to a postmortem from the interoperability agency.
Final week, the protocol mentioned no different functions have been impacted and funds should not in danger.
Day by day Debrief Publication
Begin daily with the highest information tales proper now, plus unique options, a podcast, movies and extra.
