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Project Overview
LayerZero is an omnichain interoperability protocol designed to enable developers to seamlessly issue, connect, and expand assets or applications across multiple blockchains. The protocol provides permissionless infrastructure through a decentralized architecture, with core functions including fully composable liquidity transport and support for cross-chain messaging and the Omnichain Fungible Token (OFT) standard. By decoupling underlying communication logic from the application layer, LayerZero allows smart contracts on different networks to interact directly, eliminating the complexity of cross-chain bridging while enhancing capital efficiency and development velocity.
LayerZero introduces the anti-MEV automated market maker mechanism OTTER
The LayerZero research team, in collaboration with Oblivious Labs and researchers from Carnegie Mellon University, has published a paper introducing OTTER, a novel automated market maker mechanism designed to enhance resilience against maximum extractable value (MEV). OTTER employs a batch clearing mechanism modeled after Vickrey-Clarke-Groves (VCG) auctions, making truthful reporting of valuations and budgets a dominant strategy for traders, while diminishing block builders' ability to profit from transaction ordering, sandwich attacks, or injecting false bids.
Ekiden Raises $2M in Seed Funding Led by P2 Ventures and Others
blockchain trading platform Ekiden has announced the completion of a $2 million seed funding round, led by Unicorn Factory Ventures and P2 Ventures. The round also attracted participation from angel investors who have previously invested in projects such as GSR, Pyth, Aptos, LayerZero, and Cube Exchange. It is reported that Ekiden is valued at $20 million. The company is dedicated to bringing institutional-grade trading on-chain, providing efficient and secure trading solutions through blockchain technology. (TechFundingNews)
Blockworks completes Series A extension funding at $192 million valuation, betting on the integration of crypto data and information infrastructure
Blockworks has announced the completion of a Series A extension funding round, achieving a post-money valuation of $192 million. The round was co-led by ParaFi Capital and Reciprocal Ventures, with support from Coinbase Ventures, MoonPay Ventures, and several other institutions and industry participants. The funding also attracted investments from over 20 founders and operators of ecosystem projects including Solana, LayerZero, Arbitrum, and Kraken, though the specific amount raised has not been disclosed.The company stated that while the crypto market has grown to a trillion-dollar scale lacking traditional capital market infrastructure, it still faces issues such as fragmented data, inconsistent disclosure standards, and a lack of investor communication mechanisms. Blockworks aims to fill this gap through a "data + disclosure + investor relations" tripartite architecture. (CNBC)
Wyoming Expands Partnership with Chainlink to Introduce On-Chain Reserve Verification for FRNT Stablecoin
According to The Block, the Wyoming Stable Token Committee announced the adoption of Chainlink Proof of Reserve to provide near-real-time on-chain reserve validation for its official stablecoin, Frontier Stable Token (FRNT). The Network Firm will audit FRNT reserves in accordance with AICPA standards, while Chainlink will post verification data on-chain in real time to bridge information gaps between reporting cycles. Previously, Wyoming fully migrated FRNT from LayerZero to Chainlink CCIP last month as its sole cross-chain infrastructure. The committee is also advancing the Chainlink Proof of Reserve Secure Mint feature, which requires verifying that reserves do not fall below FRNT's total supply before minting new tokens to prevent infinite minting attacks. FRNT launched in January this year and is the United States' first government-issued stable token, backed by U.S. dollars and short-term U.S. Treasuries.
LayerZero Partners with Keeta to Support Cross-Chain Transfers of Tokenized Bank Deposits
LayerZero has announced a partnership with Keeta to support the transfer of tokenized commercial bank deposits across public chains including Keeta Network, Ethereum, Solana, and Base, aiming to provide institutional cross-chain settlement infrastructure.According to the announcement, the two parties will combine LayerZero's omnichain interoperability protocol with Keeta's compliance infrastructure to support institutions in fund management and payment operations. The newly introduced Keeta Stablecoins are backed by commercial bank deposits custodied by Bivo, a licensed fintech platform in the United States. Unlike traditional stablecoins, they correspond to real commercial bank deposits and allow the issuer to maintain control over the contract through LayerZero's Omnichain Fungible Token (OFT) standard.Keeta Stablecoins will launch later this month, initially supporting the US dollar, with future expansions to include the Euro, Japanese Yen, Chinese Yuan, British Pound, Canadian Dollar, Mexican Peso, UAE Dirham, Hong Kong Dollar, and other fiat currencies. (The Block)
Cross-chain protocol Allbridge confirms $1.65 million loss from liquidity pool and plans to deprecate old architecture
the cross-chain protocol Allbridge has issued an official statement confirming that an attacker has withdrawn approximately $1.65 million in assets from the Allbridge Core liquidity pool. A detailed analysis of the incident is currently being compiled, and the full investigation results will be published subsequently. The team emphasizes that there is no further risk to current user liquidity and that the Allbridge Next service is operating normally.In response to this incident, Allbridge plans to relaunch the Core version but will remove the liquidity pool design. Future cross-chain transfers will be facilitated via Circle CCTP and the LayerZero router to eliminate the risk of liquidity pool imbalance and the model vulnerabilities exploited in this attack. This incident has accelerated the previously initiated migration plan to fully transition to the more secure new infrastructure, Allbridge Next. According to the plan, Allbridge Core and Allbridge Classic will cease operations in their current form within the next three months, and users are advised to withdraw their relevant liquidity in advance.It is understood that this attack has exposed the risks inherent in the traditional cross-chain liquidity pool model and has further driven the protocol's transition towards a cross-chain architecture based on message passing and native asset transfer.
Mantle Super Portal Has Migrated to Chainlink CCIP, Bringing Institutional-Grade Security to MNT Cross-Chain Transfers
According to official information, Mantle announced today that its native cross-chain infrastructure Mantle Super Portal, jointly developed with Bybit, has migrated from LayerZero to Chainlink CCIP. Powered by CCIP, Mantle Super Portal will feature enhanced cross-chain security, decentralized node infrastructure protection, advanced risk management, and institutional-grade security standards, providing a higher level of security for cross-chain transfers of MNT tokens valued at over $2.5 billion. Furthermore, as an increasing number of regulated assets such as tokenized stocks are transferred on-chain, the underlying infrastructure supporting them must also meet traditional finance standards. This migration will further solidify Mantle's position as a "distribution layer connecting traditional finance and on-chain liquidity," and also reflects Mantle and Bybit's continued commitment to developing MNT through further integrations, opportunities, and use cases. According to the details provided, Mantle Super Portal will be temporarily closed during the migration, scheduled from July 9 to 15, 2026 (the actual timeframe may be slightly extended). No action is required from users, and transfers will automatically resume upon completion of the migration.
Aave: 116,500 rsETH Released During April 18 rsETH Incident; Asset Backing Fully Restored
Aave has published a post-mortem of the April 18 rsETH incident, stating that the rsETH LayerZero V2 cross-chain bridge of liquid staking protocol Kelp accepted a forged message during a cross-chain transfer from Unichain to Ethereum. This caused the adapter on the Ethereum side to release 116,500 rsETH without a corresponding burn on the Unichain side. Aave stated that the attack occurred on a third-party cross-chain bridge infrastructure. However, the attacker deposited the stolen rsETH into 8 Aave V3 positions, borrowing 82,650 WETH and 821 wstETH, which impacted the Aave market.Aave stated that the attacker's rsETH on Arbitrum has now been burned. The LayerZero OFT adapter has replenished 116,131.72 rsETH in 5 batches, and the asset backing for rsETH has been fully restored. The affected WETH and rsETH markets have returned to normal.
LayerZero Releases KelpDAO Attack Report: North Korean Hackers Suspected of Involvement, Security Policies to Be Adjusted
LayerZero Labs has released a recent incident report stating that on April 18, 2026, the KelpDAO rsETH cross-chain bridge, built on its cross-chain communication protocol, suffered an attack resulting in the theft of approximately 116,500 rsETH (around $292 million). Multiple security organizations, including Mandiant, CrowdStrike, and independent researchers, have attributed this attack to the North Korea-linked hacker group TraderTraitor (UNC4899).According to the report, the attack began on March 6, 2026. The attackers compromised a LayerZero developer account through social engineering, obtained session keys, and penetrated the RPC cloud environment. They further contaminated internal RPC node data and manipulated the returned results to deceive monitoring systems and the Decentralized Verification Network (DVN). Subsequently, the attackers launched a denial-of-service attack against external RPC providers, forcing the verification system to rely on the compromised nodes to generate forged cross-chain proofs, thereby successfully extracting the funds.LayerZero pointed out that the core vulnerability of this incident lay in the affected application adopting a "single-verifier" configuration. This allowed the target contract to execute asset releases upon receiving only a single valid signature, leading to the theft of rsETH.Following the incident, LayerZero Labs announced an adjustment to security policies. This includes no longer allowing its own DVN to act as the sole signer in a single-verifier configuration, rebuilding the affected cloud infrastructure, and introducing short-term credentials, instant permission upgrades, and multi-party approval mechanisms to enhance security. Additionally, zeroShadow and law enforcement agencies have initiated investigations and asset tracing. LayerZero stated it will continue to collaborate with ecosystem partners to strengthen the cross-chain security framework to address increasingly sophisticated nation-state attack threats.
A ZRO team or investor transferred 3.51 million ZRO tokens to Binance, valued at approximately $3.96 million.
According to on-chain analyst Ember (@EmberCN), a team or investor address that received token allocations during ZRO’s launch two years ago transferred 3.51 million unlocked ZRO tokens to Binance within the past day, valued at approximately $3.96 million.
Immunefi CEO claims AI models lead to surge in crypto security vulnerabilities
Odaily, Mitchell Amador, CEO of bug bounty platform Immunefi, stated at the WAIB Summit that new AI models such as Claude Opus 4.8 and ChatGPT 5.5 are shifting the balance of cybersecurity offense and defense in favor of attackers, leading to a resurgence in crypto hacks in 2026. Data from DefiLlama shows that in April 2026, illicit actors stole over $634 million from crypto platforms, the highest monthly total since the Bybit hack in February 2025 drove losses of approximately $1.4 billion.Amador stated that the crypto industry is in a critical survival period for the next three to four years until security teams leverage similar AI models to build codebases that attackers cannot breach; if the industry adopts more crowd-sourced security solutions, this timeline could be shortened to within two years. The latest Claude Mythos model, Fable 5, from AI company Anthropic, previously raised concerns about accelerating the ability to exploit crypto vulnerabilities.Anthropic stated that Fable 5 has safeguards in place that will redirect topics related to cybersecurity and similar fields to Claude Opus 4.8. On April 19, an attacker transferred approximately 116,500 restaked Ethereum (rsETH) from Kelp DAO's LayerZero-based rsETH bridge, valued at around $290 million to $293 million at the time. Cross-chain protocol LayerZero stated that the 1/1 decentralized verification network configuration of Kelp DAO relied on a single verification path for processing cross-chain messages, creating a single point of failure. (Cointelegraph)
STG surges over 40%, an address withdraws 8 million STG worth $2.2 million from Gate
according to on-chain analyst Yujin's monitoring, STG surged over 40% after an address withdrew 8 million STG, worth $2.2 million, from Gate. Following STG's acquisition by ZRO, it can only be unidirectionally exchanged for ZRO at a fixed rate of 1 STG to 0.08634 ZRO. The price of ZRO is $0.84, which, according to the exchange rate, corresponds to a STG price of approximately $0.07. The current STG price is $0.36.
Aave Founder Calls Protocol "Resilient" Despite $8.45 Billion Deposit Run Exposing Risks
in April this year, KelpDAO's LayerZero bridge was exploited in a $292 million vulnerability attack, triggering an $8.45 billion deposit run on Aave within 48 hours, marking the largest capital outflow event in decentralized finance (DeFi) history. Aave founder Stani Kulechov stated that the design of Aave V3 withstood the market test, demonstrating the network's "resilience." However, independent data indicates that Aave's survival primarily relied on $300 million in emergency rescue, including a 25,000 ETH guarantee from the Aave DAO and a personal injection of 5,000 ETH (approximately $8.4 million) by Kulechov.Kulechov attributed the vulnerability to third-party infrastructure rather than core smart contracts. However, analysts pointed out that this incident exposed deficiencies in Aave's risk architecture and insurance mechanisms, leading the platform to incur significant bad debt (approximately $123.7 million in wETH). To prevent future bridge failures from triggering systemic bank runs, Aave V4 will adopt a modular "hub-and-spoke" architecture, enabling local risk auto-adjustment and collateral freezing. (CoinDesk)
Aave: Final Batch of rsETH Transferred to LayerZero Lockbox, All Markets Operating Normally
Aave posted on X, stating that according to the recovery plan, the final batch of rsETH has been sent to the LayerZero lockbox.Aave also noted that rsETH and all Aave markets are currently operating normally.
Analyst: Aftermath of rsETH Security Incident Continues; Demand for ETH Leveraged Loops Notably Cools
: On-chain analyst Tom Wan stated on platform X that the current ETH utilization rate has dropped below 90%, and the lending APY has fallen to 1.9%. Since the rsETH LayerZero cross-chain bridge was attacked, the deposits of wstETH and weETH have decreased by approximately $1.2 billion and $1.76 billion, respectively. As the strategy of leveraged looping wstETH/weETH against ETH becomes profitable again, market attention is turning to whether demand for ETH leveraged loops will return, or if capital will continue to wait on the sidelines or flow into protocols like Spark and Morpho.
LayerZero introduces the anti-MEV automated market maker mechanism OTTER
The LayerZero research team, in collaboration with Oblivious Labs and researchers from Carnegie Mellon University, has published a paper introducing OTTER, a novel automated market maker mechanism designed to enhance resilience against maximum extractable value (MEV). OTTER employs a batch clearing mechanism modeled after Vickrey-Clarke-Groves (VCG) auctions, making truthful reporting of valuations and budgets a dominant strategy for traders, while diminishing block builders' ability to profit from transaction ordering, sandwich attacks, or injecting false bids.
Wyoming Expands Partnership with Chainlink to Introduce On-Chain Reserve Verification for FRNT Stablecoin
According to The Block, the Wyoming Stable Token Committee announced the adoption of Chainlink Proof of Reserve to provide near-real-time on-chain reserve validation for its official stablecoin, Frontier Stable Token (FRNT). The Network Firm will audit FRNT reserves in accordance with AICPA standards, while Chainlink will post verification data on-chain in real time to bridge information gaps between reporting cycles. Previously, Wyoming fully migrated FRNT from LayerZero to Chainlink CCIP last month as its sole cross-chain infrastructure. The committee is also advancing the Chainlink Proof of Reserve Secure Mint feature, which requires verifying that reserves do not fall below FRNT's total supply before minting new tokens to prevent infinite minting attacks. FRNT launched in January this year and is the United States' first government-issued stable token, backed by U.S. dollars and short-term U.S. Treasuries.
PeckShield: The cryptocurrency industry experienced 50 major attack incidents in August, with total losses of approximately $136.3 million.
According to PeckShieldAlert, the cryptocurrency industry saw 50 major attack incidents in August 2026, an increase of 67% over the 30 incidents in July. Total losses reached approximately $136.3 million, a 49.5% decrease from the $270 million in July. The Tectonic.cro incident caused approximately $74 million in losses, ranking as the fourth-largest crypto theft of the year, behind only attacks associated with Drift, KelpDAO/LayerZero, and COLDCARDwallet. The attacker managed to cross-chain only around $6 million to Ethereum before Cronos suspended its entire network, leaving the rest of the funds mostly stranded on Cronos. The attacker has since started laundering the illicit proceeds and bridging a portion to Bitcoin, amounting to roughly $200,000 to date. Other significant attack incidents in August involved Moonwell, Termlabs, Coinsbuy, TAC, Injective, MANTRA, BounceBit, Cosmos Labs, and aquifer.
The on-chain tokenized asset market is expected to reach $4 trillion by the end of 2028, while Standard Chartered projects Chainlink will hit $200 by the end of 2030
Odaily News: Standard Chartered initiated coverage on Monday of blockchain oracle project Chainlink, projecting LINK to reach $200 by the end of 2030 — roughly 25 times its current price of around $8. The bank's phased targets are $13 by the end of this year, followed by $41, $82, and $133. Standard Chartered estimates that the on-chain tokenized asset market will reach $4 trillion by the end of 2028, with DeFi-deployed assets hitting $2.7 trillion by 2030 — a 37-fold increase from current levels. The bank expects Chainlink fees to grow approximately 25-fold over the same period, assuming token prices track fee growth. Chainlink secures over $110 billion in total value, covering approximately 70% of the value that global DeFi relies on from oracles, with a share exceeding 80% on Ethereum; Aave V3 accounts for 44% of that. Swift, DTCC, Euroclear, JPMorgan, Mastercard, UBS, Fidelity, and S&P Global are all listed as institutions using its services. Chainlink still lags behind LayerZero in cross-chain interoperability. Following the $292 million attack in April, over $7 billion in token value has migrated to Chainlink CCIP, with second-quarter transaction volume reaching $4.9 billion — up 353% year-over-year. Risks include slowing institutional tokenization, pilots not converting to production processes, and technical failures impacting confidence. (Decrypt)
BitGo Switches Its $7.3B WBTC Cross-Chain Service Provider to Chainlink CCIP
: Crypto infrastructure company BitGo will switch its exclusive cross-chain service provider for $7.3 billion worth of WBTC from LayerZero to Chainlink CCIP. Following the $292 million cross-chain bridge exploit at Kelp, multiple projects have announced migrations from LayerZero to Chainlink, with disclosed migration volumes totaling $14.5 billion. BitGo will use CCIP for future assets while retaining control over token contracts, rate limits, and transfer settings.
Cross-chain protocol Allbridge confirms $1.65 million loss from liquidity pool and plans to deprecate old architecture
the cross-chain protocol Allbridge has issued an official statement confirming that an attacker has withdrawn approximately $1.65 million in assets from the Allbridge Core liquidity pool. A detailed analysis of the incident is currently being compiled, and the full investigation results will be published subsequently. The team emphasizes that there is no further risk to current user liquidity and that the Allbridge Next service is operating normally.In response to this incident, Allbridge plans to relaunch the Core version but will remove the liquidity pool design. Future cross-chain transfers will be facilitated via Circle CCTP and the LayerZero router to eliminate the risk of liquidity pool imbalance and the model vulnerabilities exploited in this attack. This incident has accelerated the previously initiated migration plan to fully transition to the more secure new infrastructure, Allbridge Next. According to the plan, Allbridge Core and Allbridge Classic will cease operations in their current form within the next three months, and users are advised to withdraw their relevant liquidity in advance.It is understood that this attack has exposed the risks inherent in the traditional cross-chain liquidity pool model and has further driven the protocol's transition towards a cross-chain architecture based on message passing and native asset transfer.
Derive Launches V3 Migration Proposal: Migrating V2 Positions and Balances to a zkVM Architecture Settled on Ethereum Mainnet
TechFlow The Derive community has released the "Launch Derive V3" proposal, planning to deploy and launch Derive V3. The new version will run on zkVM programs settled on the Ethereum mainnet, migrating Derive V2 accounts, balances, positions, rewards, native ETH, and ERC-20 assets held in wallets to the V3 genesis state. Upon completion of the migration, bridged funds will be transferred to L1 contracts, user wallets, or the relevant LayerZero OFTAdapter contracts, and Derive Chain will gradually shut down.
a16z crypto releases Lattice Jolt: The first high-performance post-quantum zkVM based on lattice cryptography
According to an official post from a16z crypto, a16z crypto has officially released Lattice Jolt, a new version of its open-source zkVM (zero-knowledge virtual machine) that fully transitions its underlying cryptography from elliptic curves to a lattice architecture, achieving post-quantum security while significantly boosting performance. Key highlights include: • Performance improvement: Proof generation speed increased by 2-3 times, reaching up to 2 million RV64IMAC cycles per second in CPU mode, and breaking through 10 million cycles per second with MacBook GPU acceleration (Apple Metal); • Smallest proof size: Proof footprint is under 100 KB, significantly outperforming other post-quantum zkVMs with sizes ranging from 200 KB to 600 KB; • Memory optimization: Memory consumption per cycle reduced from approximately 300 bytes to 200 bytes, supporting proof generation for millions of RISC-V cycles on mobile devices; • Security: Based on the standard Module-SIS assumption, providing a complete 128-bit security strength, sharing the same assumption framework as ML-DSA and ML-KEM; • New commitment scheme: The Akita polynomial commitment scheme, jointly developed by LayerZero in collaboration with institutions such as Carnegie Mellon University and the University of Southern California, replaces the original Dory scheme. a16z crypto also pointed out that hash-based SNARKs are widespread...
LayerZero introduces the anti-MEV automated market maker mechanism OTTER
The LayerZero research team, in collaboration with Oblivious Labs and researchers from Carnegie Mellon University, has published a paper introducing OTTER, a novel automated market maker mechanism designed to enhance resilience against maximum extractable value (MEV). OTTER employs a batch clearing mechanism modeled after Vickrey-Clarke-Groves (VCG) auctions, making truthful reporting of valuations and budgets a dominant strategy for traders, while diminishing block builders' ability to profit from transaction ordering, sandwich attacks, or injecting false bids.
Wyoming Expands Partnership with Chainlink to Introduce On-Chain Reserve Verification for FRNT Stablecoin
According to The Block, the Wyoming Stable Token Committee announced the adoption of Chainlink Proof of Reserve to provide near-real-time on-chain reserve validation for its official stablecoin, Frontier Stable Token (FRNT). The Network Firm will audit FRNT reserves in accordance with AICPA standards, while Chainlink will post verification data on-chain in real time to bridge information gaps between reporting cycles. Previously, Wyoming fully migrated FRNT from LayerZero to Chainlink CCIP last month as its sole cross-chain infrastructure. The committee is also advancing the Chainlink Proof of Reserve Secure Mint feature, which requires verifying that reserves do not fall below FRNT's total supply before minting new tokens to prevent infinite minting attacks. FRNT launched in January this year and is the United States' first government-issued stable token, backed by U.S. dollars and short-term U.S. Treasuries.
LayerZero Launches ATLAS Trading Engine, ZRO Surges Over 30%
LayerZero has launched the ATLAS trading and settlement engine built on the Zero blockchain, supporting all-hours market trading for stocks, bonds, and cryptocurrencies; driven by this positive development in innovative infrastructure, the price of its ZRO token has surged significantly.
LayerZero will launch the blockchain exchange ATLAS for financial institutions.
According to The Information, blockchain infrastructure company LayerZero has announced it will launch a blockchain exchange named ATLAS this fall, targeting financial institutions. ATLAS will not offer a consumer-facing application, but will instead serve as an underlying exchange for other trading platforms and financial institutions. The platform will initially support spot crypto tokens and perpetual futures trading, with plans to later expand to prediction contracts, futures, and options.
Related news
Derive Launches V3 Migration Proposal: Migrating V2 Positions and Balances to a zkVM Architecture Settled on Ethereum Mainnet
TechFlow The Derive community has released the "Launch Derive V3" proposal, planning to deploy and launch Derive V3. The new version will run on zkVM programs settled on the Ethereum mainnet, migrating Derive V2 accounts, balances, positions, rewards, native ETH, and ERC-20 assets held in wallets to the V3 genesis state. Upon completion of the migration, bridged funds will be transferred to L1 contracts, user wallets, or the relevant LayerZero OFTAdapter contracts, and Derive Chain will gradually shut down.
a16z crypto releases Lattice Jolt: The first high-performance post-quantum zkVM based on lattice cryptography
According to an official post from a16z crypto, a16z crypto has officially released Lattice Jolt, a new version of its open-source zkVM (zero-knowledge virtual machine) that fully transitions its underlying cryptography from elliptic curves to a lattice architecture, achieving post-quantum security while significantly boosting performance. Key highlights include: • Performance improvement: Proof generation speed increased by 2-3 times, reaching up to 2 million RV64IMAC cycles per second in CPU mode, and breaking through 10 million cycles per second with MacBook GPU acceleration (Apple Metal); • Smallest proof size: Proof footprint is under 100 KB, significantly outperforming other post-quantum zkVMs with sizes ranging from 200 KB to 600 KB; • Memory optimization: Memory consumption per cycle reduced from approximately 300 bytes to 200 bytes, supporting proof generation for millions of RISC-V cycles on mobile devices; • Security: Based on the standard Module-SIS assumption, providing a complete 128-bit security strength, sharing the same assumption framework as ML-DSA and ML-KEM; • New commitment scheme: The Akita polynomial commitment scheme, jointly developed by LayerZero in collaboration with institutions such as Carnegie Mellon University and the University of Southern California, replaces the original Dory scheme. a16z crypto also pointed out that hash-based SNARKs are widespread...
ARK Invest Head of Digital Asset Research: LayerZero Interoperability Business May Rapidly Grow to Nine-Figure ARR
Lorenzo Valente, Director of Digital Asset Research at ARK Invest, stated that as more assets come on-chain, market demand for universal interoperability will grow exponentially. He expects that LayerZero's interoperability business itself is likely to soon generate nine-figure annual recurring revenue (ARR).
LayerZero introduces the anti-MEV automated market maker mechanism OTTER
The LayerZero research team, in collaboration with Oblivious Labs and researchers from Carnegie Mellon University, has published a paper introducing OTTER, a novel automated market maker mechanism designed to enhance resilience against maximum extractable value (MEV). OTTER employs a batch clearing mechanism modeled after Vickrey-Clarke-Groves (VCG) auctions, making truthful reporting of valuations and budgets a dominant strategy for traders, while diminishing block builders' ability to profit from transaction ordering, sandwich attacks, or injecting false bids.
Wyoming Expands Partnership with Chainlink to Introduce On-Chain Reserve Verification for FRNT Stablecoin
According to The Block, the Wyoming Stable Token Committee announced the adoption of Chainlink Proof of Reserve to provide near-real-time on-chain reserve validation for its official stablecoin, Frontier Stable Token (FRNT). The Network Firm will audit FRNT reserves in accordance with AICPA standards, while Chainlink will post verification data on-chain in real time to bridge information gaps between reporting cycles. Previously, Wyoming fully migrated FRNT from LayerZero to Chainlink CCIP last month as its sole cross-chain infrastructure. The committee is also advancing the Chainlink Proof of Reserve Secure Mint feature, which requires verifying that reserves do not fall below FRNT's total supply before minting new tokens to prevent infinite minting attacks. FRNT launched in January this year and is the United States' first government-issued stable token, backed by U.S. dollars and short-term U.S. Treasuries.
PeckShield: The cryptocurrency industry experienced 50 major attack incidents in August, with total losses of approximately $136.3 million.
According to PeckShieldAlert, the cryptocurrency industry saw 50 major attack incidents in August 2026, an increase of 67% over the 30 incidents in July. Total losses reached approximately $136.3 million, a 49.5% decrease from the $270 million in July. The Tectonic.cro incident caused approximately $74 million in losses, ranking as the fourth-largest crypto theft of the year, behind only attacks associated with Drift, KelpDAO/LayerZero, and COLDCARDwallet. The attacker managed to cross-chain only around $6 million to Ethereum before Cronos suspended its entire network, leaving the rest of the funds mostly stranded on Cronos. The attacker has since started laundering the illicit proceeds and bridging a portion to Bitcoin, amounting to roughly $200,000 to date. Other significant attack incidents in August involved Moonwell, Termlabs, Coinsbuy, TAC, Injective, MANTRA, BounceBit, Cosmos Labs, and aquifer.