Altcoins News

Story: Kelp Blames LayerZero for $292M Exploit, Jumps to Chainlink Oracles

By Sydney TheCMO

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Kelp Ditches LayerZero Infrastructure. So Kelp's done with LayerZero. The platform announced it's switching to Chainlink for its oracle…

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Court Case Adds Financial Pressure. The $71 million legal battle adds another layer of mess to Kelp's situation.

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Kelp just accused LayerZero of letting hackers drain $292 million from its platform. The DeFi protocol didn't mince words.

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The attack hit through what Kelp calls vulnerabilities in LayerZero's cross-chain messaging system.

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Cross-chain bridges have become a favorite target for hackers over the past couple years. Billions have vanished through exploits that took advantage of weak spots in how…

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But here's the thing. LayerZero hasn't said anything publicly about Kelp's accusations. No statement, no rebuttal, nothing.

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The $71 million legal battle adds another layer of mess to Kelp's situation. The platform hasn't shared much about what that case involves or when it might wrap up.

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Kelp told users the Chainlink transition is a "critical step" in its recovery plan. The platform's trying to reassure people that their remaining funds are safe and that the new…

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The DeFi space has seen this pattern before. Platform gets hacked, platform promises better security, users wait to see if it's real. Sometimes the platform comes back stronger.

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See also: BlinkEx Launches Spot Trading Platform With Proactive Security Controls

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Kelp said it's reviewing "all operational protocols" to find other potential weak spots. That review probably should've happened before $292 million walked out the door, but…

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Industry watchers are paying attention to how this plays out. If Kelp successfully transitions to Chainlink and avoids future exploits, other platforms might follow.

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The Chainlink switch involves more than just plugging in new oracle services. Kelp's got to rebuild parts of its smart contract infrastructure, test everything extensively, and…

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Kelp hasn't given a timeline for when the Chainlink integration will be complete. "Coming soon" is about as specific as they've gotten.

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The $292 million loss ranks among the bigger DeFi hacks in recent memory, though it's not the biggest.

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