Lombard Finance Dumps LayerZero, Migrates to Chainlink's Cross-Chain Interoperability Platform

Lombard Finance, a leading decentralized finance (DeFi) firm, has announced that it is replacing LayerZero technology with Chainlink's cross-chain interoperability platform (CCIP). This move comes after an extensive review of its Bitcoin asset tech stack in the wake of last month's $292 million Kelp DAO exploit.

The decision to switch to CCIP was made following a thorough security audit and assessment of potential vulnerabilities. Lombard Finance emphasized that this change prioritizes the safety and security of all users, reflecting the company's commitment to maintaining its zero-security-incident record and 100% uptime.

As part of the transition, Lombard will discontinue use of LayerZero technology on Ethereum layer-2 network Morph and staking protocol Swell. The firm will also adopt Chainlink's Cross-Chain Token (CCT) standard for minting and burning new tokens that are natively cross-chain compatible.

This move follows a similar decision by crypto exchange Kraken, which opted to use CCIP instead of LayerZero technology. Kraken had previously used LayerZero for its kBTC wrapped Bitcoin token. With the switch to CCIP, Lombard Finance aims to ensure the security and integrity of its operations, protecting over $1 billion in Bitcoin-linked assets across Solana, Ethereum, and Berachain.