Kelp DAO moves rsETH to Chainlink CCIP amid a public conflict with LayerZero 🚀

The story around rsETH has turned into not just a technical migration, but a new public conflict within the crypto infrastructure. Kelp DAO stated that it is moving rsETH to Chainlink CCIP after the April bridge incident, while at the same time openly placing part of the responsibility on LayerZero. For the market, this is no longer just a story about a single attack, but also about how quickly large protocols can reconsider their core cross-chain infrastructure after a crisis.

What happened

Kelp DAO announced the transition of rsETH to Chainlink CCIP, explaining this by a desire to strengthen security after the April exploit. At the center of the dispute – the LayerZero configuration, which Kelp DAO considers a weak point in the previous architecture. It was against this backdrop that the protocol decided to bring the migration into the public sphere, rather than simply quietly changing the technical provider.

Why there is so much noise around this

The story quickly went beyond the bounds of a typical postmortem, because Bryan Pellegrino, co-founder of LayerZero, publicly became involved in it. He rejected part of Kelp DAO’s accusations and stated that the situation does not look as unambiguous as it is being presented in the public space. At the same time, he promised that a full breakdown of the incident, prepared by external security firms, would be published very soon.

What this means for the market

This case shows how painful the topic of cross-chain security has become for large DeFi protocols. If earlier infrastructure decisions were often perceived as a technical backend, now they are becoming part of reputational risk. Kelp DAO’s migration to Chainlink CCIP reads as a signal that after major incidents, the market is ready to quickly change core technological layers, even if that triggers a public conflict between major players.

Conclusion

The transition of rsETH to Chainlink CCIP – is not just a technical update. It is a story about loss of trust, public shifting of responsibility, and a struggle over whose version of the incident will become the main one for the market. While Kelp DAO is moving toward a new cross-chain solution, LayerZero is trying to defend its position and is preparing an external report. That is exactly why this story is still far from over.