Kelp Blames LayerZero for 292 Million Hack, Switches to Chainlink

Kelp, a decentralized finance (DeFi) protocol, is facing the consequences of a $292 million exploit that occurred in April. The incident has led to a redesign of Kelp's cross-chain system, which will be replaced with Chainlink's infrastructure.

The attack on Kelp's cross-chain bridge was tied to North Korea's Lazarus Group and resulted in the loss of 116,500 rsETH, an Ethereum-based staking token. LayerZero, the provider of Kelp's cross-chain infrastructure, has disputed Kelp's account of events, but Kelp claims that its use of a single-verifier setup was widely used across the ecosystem.

Kelp has stated that it will be migrating to Chainlink's cross-chain interoperability protocol, which uses multiple independent validators instead of a single verifier. This move is seen as an effort to improve the security of Kelp's system and prevent similar attacks in the future.