After Kelp DAO suffered a $292 million attack in April this year, cross-chain bridge security has once again become a focal point in the DeFi market. Lombard Finance stated that, following an internal security review, it has decided to migrate over $1 billion in Bitcoin-backed assets from LayerZero to Chainlink’s CCIP.
Lombard said that CCIP will be the exclusive cross-chain infrastructure for LBTC and BTC.b. These two asset types are primarily used to bring Bitcoin liquidity into DeFi and can be used across multiple smart contract networks for trading, collateralization, and other on-chain scenarios.
Involves multiple blockchains
This migration will cover Solana, Etherlink, Berachain, Corn, and TAC. Lombard also stated that LayerZero will be fully disabled on Morph and Swell.
Lombard co-founder Jacob Phillips said that, following recent cross-chain bridge security incidents, the team reassessed its existing solutions and ultimately selected Chainlink CCIP to facilitate the cross-chain transfer of LBTC and BTC.b.
The migration uses a burn-and-mint model.
In addition to replacing its cross-chain infrastructure, Lombard will adopt Chainlink’s cross-chain token standard. According to the announcement, this standard supports a "burn and mint" model, enabling the same token standard to be transferred across different blockchains without relying on multiple external wrapped solutions.
Lombard believes this approach reduces external dependencies while retaining control over the token contract, avoiding deep reliance on a single service provider. The project team also states that since launch, the protocol has experienced no security incidents and has maintained 100% uptime, so the cross-chain layer must meet the same standard.
A migration wave emerged after the Kelp incident.
The report notes that following the Kelp DAO incident, multiple crypto companies and DeFi protocols have begun reassessing cross-chain bridge risks. Industry estimates indicate that the value of assets transitioning to or planning to transition to Chainlink CCIP has reached approximately $4 billion.
In addition to Lombard, Kelp DAO, Solv Protocol, Re, and Kraken have also migrated or announced migration plans. Kraken previously stated that it would integrate kBTC and future Kraken Wrapped Assets with Chainlink CCIP; Kelp DAO has also resumed rsETH withdrawals, cross-chain transfers, and claims processes in its recovery plan.
Lombard also noted that CCIP provides independent node operators, built-in rate limiting, and audited infrastructure. The project team states that these design features can limit asset movement during abnormal conditions and allow room for future integration of proprietary security verification layers.