Solv Protocol Migrates $700 Million from LayerZero to Chainlink CCIP Across Multiple Chains

Solv Protocol is migrating $700 million in SolvBTC and xSolvBTC tokens from LayerZero to Chainlink CCIP across Corn, Berachain, Rootstock and TAC networks. The move follows a $292 million Kelp DAO exploit on April 18, 2026, where hackers stole 116,500 restaked ETH tokens from LayerZero infrastructure. Kelp DAO announced its own rsETH migration to Chainlink CCIP on May 6, 2026, citing the need for more secure cross-chain infrastructure.

KelpDAO exploit details

• ▪Hackers stole 116,500 restaked ETH tokens from Kelp DAO's LayerZero-powered bridge on April 18, 2026
• ▪The Kelp DAO exploit was valued at $292 million at the time of the attack
• ▪The stolen tokens from Kelp DAO were used as collateral on Aave v3 to borrow wrapped Ether
• ▪Kelp DAO pinned responsibility for the exploit on LayerZero's bridge setup

LayerZero DVN configuration dispute

• ▪LayerZero said it had advised Kelp DAO against using a single DVN setup
• ▪Bryan Pellegrino argued that Kelp DAO originally used multi-DVN defaults and later manually changed to a 1-1 configuration
• ▪A complete postmortem by external security firms will be published soon according to Bryan Pellegrino
• ▪Bryan Pellegrino is co-founder and chief executive of LayerZero
• ▪Kelp DAO has operated on LayerZero infrastructure since January 2024
• ▪Kelp DAO stated the 1-1 DVN setup is the default configuration and is used by roughly half of LayerZero users according to analytics platform Dune
• ▪LayerZero argued the Kelp DAO hack occurred because Kelp relied on a single LayerZero DVN as the only verified path rather than requiring multiple independent checks
• ▪Kelp DAO accused LayerZero of approving the 1-1 DVN setup and failing to warn about the related security risk
• ▪Bryan Pellegrino stated that rsETH was originally configured to use the default LayerZero configuration of a multiDVN setup of LayerZero Labs and Google

Migration to Chainlink CCIP

• ▪Solv Protocol is migrating $700 million from LayerZero to Chainlink CCIP across multiple chains
• ▪Kelp DAO announced the rsETH migration to Chainlink CCIP on May 6, 2026
• ▪Kelp DAO cited the need for a more secure cross-chain path as the reason for migrating to Chainlink CCIP

Broader DeFi contagion

• ▪LayerZero announced it will no longer validate or approve cross-chain messages for any app that relies on a single verifier
• ▪The Kelp DAO exploit caused broader ecosystem contagion and impacted the interconnected crypto lending market

Attribution to North Korean hackers

• ▪North Korea-linked hackers are suspected of being behind the April 1, 2026 exploit of decentralised exchange Drift, which totalled $285 million
• ▪North Korea-linked hackers are suspected of being behind the Kelp DAO attack on April 18, 2026

Perspective of LayerZero

• ▪Bryan Pellegrino argued that Kelp DAO originally used multi-DVN defaults and later manually changed to a 1-1 configuration
• ▪LayerZero argued the Kelp DAO hack occurred because Kelp relied on a single LayerZero DVN as the only verified path rather than requiring multiple independent checks

Perspective of Kelp DAO

• ▪Kelp DAO stated the 1-1 DVN setup is the default configuration and is used by roughly half of LayerZero users according to analytics platform Dune
• ▪Kelp DAO accused LayerZero of approving the 1-1 DVN setup and failing to warn about the related security risk