Solv Protocol said it will move more than $700 million in tokenized Bitcoin assets to Chainlink CCIP.
Summary
- Solv is moving $700M+ tokenized Bitcoin to Chainlink CCIP after reviewing bridge security risks carefully.
- Kelp DAO’s rsETH exploit pushed more protocols to question LayerZero-linked single-verifier bridge setups in DeFi.
- Aave’s recovery process continued as liquidations cleared attacker positions, but frozen Ether remains disputed legally.
The migration covers SolvBTC and xSolvBTC, which Solv uses across its Bitcoin finance products. The protocol said the decision followed an updated review of cross-chain systems and recent bridge hacks.
As part of the move, Solv will phase out LayerZero bridge support for Corn, Berachain, Rootstock, and TAC. Solv said Chainlink CCIP will become its official cross-chain infrastructure. Its CTO Will Wang said, “Security is the foundation of everything we build at Solv.”
Kelp DAO dispute puts bridges under watch
The move came after Kelp DAO said it would shift rsETH to Chainlink CCIP. The decision followed an April exploit that drained 116,500 rsETH from a LayerZero-powered bridge. Crypto.news reported that the stolen tokens later entered Aave v3 as collateral before parts of the funds were frozen.
The dispute between Kelp DAO and LayerZero remains unresolved. Kelp DAO claimed LayerZero approved the single-verifier setup later blamed for the attack.
LayerZero CEO Bryan Pellegrino rejected that account and said Kelp moved away from a default multi-verifier setup. Kelp also cited data showing many LayerZero apps used one verifier.
Aave recovery adds fresh market context
In a related update, crypto.news reported that Aave completed liquidation of the attacker’s final rsETH-backed positions on Ethereum and Arbitrum. Aave said the recovered collateral moved to Recovery Guardian, a multisig wallet controlled by DeFi United.
The recovery is not complete. Crypto.news reported that DeFi United still needs more support from Circle, Ethena, Frax, and Ink to restore rsETH backing. A separate legal dispute also covers 30,765 ETH, worth about $71 million, frozen by Arbitrum DAO after the exploit.
Bridge risk becomes the main story
The Solv migration adds to a wider shift in how DeFi projects review cross-chain infrastructure. OpenZeppelin said no public evidence showed a broken smart contract in the Kelp DAO case. It said the failure appeared tied to bridge operations and integration settings, not only deployed code.
That context makes Solv’s decision more than a vendor change. The protocol is moving a large tokenized Bitcoin stack at a time when users are asking how bridges verify messages and protect collateral. For Solv, the shift to Chainlink CCIP is now framed around reducing bridge exposure while keeping its Bitcoin products active across chains.
Solv did not directly blame LayerZero in its migration note. Instead, it pointed to security reviews and recent cross-chain incidents. That wording keeps the announcement focused on infrastructure choice, while the Kelp DAO dispute continues to shape the wider debate around cross-chain bridge design and user protection.
