Two major DeFi projects—lending protocol Tydro on Kraken’s Ink network and Bitcoin staking firm Lombard Finance—are migrating their oracle and cross-chain infrastructure to Chainlink, citing security concerns after recent exploits. The moves underscore a growing trend of projects abandoning previous providers in favor of Chainlink’s battle-tested decentralized networks.
Tydro, a lending protocol built on Kraken’s Layer 2 Ink, announced it switched its price oracle from Chaos Labs to Chainlink data feeds. The decision followed a security review prompted by a hacking attempt on Chaos Labs earlier this month. Details of the attack remain scarce, but Tydro stated the switch was a direct result of its internal review. Price oracles are critical for lending protocols to accurately determine collateralization, liquidations, and interest rates; a compromised oracle can lead to insolvency.
Lombard Finance, which manages over $1 billion in Bitcoin-backed assets across Solana, Ethereum, and Berachain, is replacing LayerZero technology with Chainlink’s Cross-Chain Interoperability Protocol (CCIP). The move directly follows the $292 million Kelp DAO exploit, where LayerZero’s internal RPCs were poisoned by North Korean hackers. LayerZero admitted it “made a mistake” with internal configurations. Lombard’s BTC.B and staked LBTC tokens are both migrating, alongside similar exits by Solv Protocol, Re, and Kelp DAO, representing billions in TVL. Lombard will also adopt Chainlink’s Cross-Chain Token standard for native minting and burning.
Both projects emphasized zero security incidents since inception, framing the shift as a proactive step to maintain user trust. Kraken similarly opted for Chainlink CCIP to power its kBTC wrapped Bitcoin token. The collective pivot highlights Chainlink’s growing dominance as the go-to secure infrastructure layer for DeFi, with the market responding accordingly.
