Lombard Finance Ditches LayerZero, Adopts Chainlink for $1B Bitcoin Assets

Lombard Finance, a Bitcoin DeFi protocol, is migrating its cross-chain infrastructure from LayerZero to Chainlink, moving over $1 billion in Bitcoin-pegged assets. The decision follows the recent $292 million exploit of Kelp DAO, which used LayerZero technology. Lombard cited security as the primary reason for the switch, aiming to protect user funds and ensure protocol integrity.

The move underscores growing concerns about cross-chain security in the DeFi space. The Kelp DAO hack, one of the largest in 2026, highlighted vulnerabilities in LayerZero's bridging mechanism. For crypto traders, this event reinforces the importance of robust oracle and bridge infrastructure. Bitcoin DeFi protocols like Lombard rely on accurate price feeds and secure cross-chain communication to maintain peg stability and prevent exploits. As the sector expands, security audits and infrastructure choices become critical factors for investor confidence. Traders can monitor current pricing and asset flows on NowPrice's crypto page for real-time data on affected tokens.

Looking ahead, the migration to Chainlink is expected to complete in the coming weeks. Market participants will watch for any impact on Lombard's total value locked (TVL) and the broader Bitcoin DeFi ecosystem. The incident may prompt other protocols to reassess their cross-chain dependencies, potentially accelerating adoption of alternative oracle networks. Regulatory scrutiny of cross-chain bridges could also intensify, given the scale of recent losses.