Cross-chain interoperability provider LayerZero has announced plans to withdraw off-chain support for 14 low-activity chains, including Arbitrum Nova. The shutdown is scheduled to take place within 30 days, by September.
According to the firm's statement, decentralized verifier networks (DVNs) and Executors—which handle off-chain communication between different chains—will be deprecated for the affected networks. Other impacted networks include Cronos zkEVM, Degen, Skale Europa, Superposition, and Shrapnel. LayerZero warned that assets, including stablecoins such as USDT and USDC remaining on these chains, could become stranded if users do not move them prior to the full shutdown.
Since July, LayerZero has flagged over 30 low-activity chains for similar measures, following the previous shutdown of BounceBit.
Security Fallout and Migration to Chainlink CCIP
The operational shift follows the KelpDAO hack, which resulted in a $292 million loss, marking it as one of the largest decentralized finance (DeFi) exploits. The security breach originated from LayerZero's recommended "1-of-1" DVN setup, which lacked sufficient verification prior to approving large minting operations and fund transfers. Following the vulnerability, Aave ceased support for most low-adopted reserve assets and ghost chains.
In the wake of the incident, several prominent projects and entities—including the Wyoming state government, BitGo, and Nethermind—migrated from LayerZero to rival Chainlink CCIP. Chainlink's Zach Rynes estimated that a total of $15 billion has migrated away from LayerZero. Additionally, LayerZero's bridged volume declined fourfold from nearly 400,000 ETH to approximately 100,000 ETH, according to DeFiLlama data.
Industry observers note that winding down support for low-activity chains serves as a strategic effort by LayerZero to lower its security risk exposure and address increasing competition from Chainlink CCIP.
