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LayerZero says it ‘made a mistake’ in $292 Million Kelp exploit
Key takeaways
- “First things first: an overdue apology,” LayerZero wrote in a blog published Friday.
- A DVN is part of the infrastructure that verifies whether a transaction moving assets between blockchains is legitimate.
- “We made a mistake by allowing our DVN to act as a 1/1 DVN for high-value transactions,” the company said. “We didn't police what our DVN was securing, which created a risk we simply didn't see.
The admission marks a notable shift after weeks of public finger-pointing between LayerZero and Kelp over responsibility for the April hack, which LayerZero had initially framed as an application-level configuration failure by Kelp.
“First things first: an overdue apology,” LayerZero wrote in a blog published Friday.
LayerZero initially blamed Kelp, arguing the protocol had chosen a risky “1-of-1” configuration in which only a single decentralized verifier network, or DVN, needed to approve cross-chain transfers, creating a single point of failure. A DVN is part of the infrastructure that verifies whether a transaction moving assets between blockchains is legitimate.
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