Solv Protocol exits LayerZero, moves $700M BTC to CCIP
Solv Protocol said it will deprecate LayerZero bridge support and migrate $700M+ in tokenized Bitcoin infrastructure to Chainlink’s Cross-Chain Interoperability Protocol (Chainlink CCIP). The move follows intensified scrutiny after a suspected $292M Kelp DAO exploit tied to LayerZero-powered bridging.
On May 7, Solv said SolvBTC and xSolvBTC cross-chain transfers will be standardized on Chainlink CCIP, with LayerZero bridging support slated for decommissioning across Corn, Berachain, Rootstock, and TAC. CTO Will Wang framed this as part of a broader security review, arguing Chainlink CCIP can provide “institutional-grade” assurances for SolvBTC/xSolvBTC.
Separately, Kelp DAO blamed LayerZero for the April 18 incident and said it is relaunching with a redesigned cross-chain system on Chainlink, citing an architecture using multiple independent validators.
For traders, the key takeaway is the ongoing DeFi shift away from weaker bridge assumptions toward Chainlink CCIP for BTC-related liquidity routing, which may reduce perceived bridge risk but is unlikely to change BTC’s fundamentals immediately.
Neutral
This is a security- and infrastructure-focused migration (LayerZero deprecation) for BTC-related wrapped assets rather than a change in BTC supply/demand. In the short term, it can improve sentiment around cross-chain settlement risk, but it is not a direct catalyst for BTC price. In the long term, if more DeFi teams follow similar moves to Chainlink CCIP, perceived bridge risk for BTC liquidity could decline, supporting steadier liquidity conditions. Net effect on BTC is therefore likely neutral rather than strongly bullish or bearish.