- The Wyoming Stable Token Commission has fully migrated the FRNT stable token from LayerZero to the Chainlink CCIP, citing the latter’s high level of security and reliability.
It’s been four months since the KelpDAO bridge exploit that allowed hackers to steal over $292 million. However, the incident continues to haunt LayerZero (ZRO), the omnichain protocol powering the decentralized liquid restaking protocol.
The industry’s dramatic loss of confidence in LayerZero has triggered a massive migration of billions of dollars in decentralized finance (DeFi) assets to other platforms. Chainlink (LINK), the leading oracle and cross-chain protocol with a market cap of nearly $8 billion, has absorbed most of the flows, reinforcing the chain’s momentum in its market segment.
Wyoming Stable Token Commission Ditches LayerZero in Favor of Chainlink for FRNT
Recently, the Wyoming Stable Token Commission, a US government entity issuing the Frontier Stable Token (FRNT) state-backed digital dollar stablecoin, has joined the likes of BitGo, Nethermind, and Aave (AAVE) in ditching LayerZero in favor of Chainlink. On August 18, it announced its full migration to the latter after the parties forged an exclusive multi-year contract.
According to the Commission, its decision stemmed from its comprehensive review of LayerZero’s disclosure practices and operational security. Concerns over the matter, likely amplified by the KelpDAO exploit, have led the public entity to deprecate FRNT’s integration with the LayerZero omnichain fungible token standard.
Anthony Apollo, Executive Director of the Wyoming Stable Token Commission, explained that only Chainlink met its “stringent security and reliability requirements across the board.” Thus, it only made sense to deploy the FRNT token onto its Cross-Chain Interoperability Protocol (CCIP).
The Commission particularly praised CCIP for its defense-in-depth approach to security, including institutional certifications such as SOC2 Type 2. Additionally, it highlighted the platform’s highly audited codebase, robust monitoring systems, built-in risk controls, and decentralized architecture where every transaction is redundantly validated by a minimum of 16 independent node operators.
The FRNT Stable Token
The FRNT stable token is the world’s first fully reserved, fiat-backed stable token issued by a US public entity, the State of Wyoming. The asset is pegged 1:1 and physically backed by the US dollar. Short-term Treasury holdings also back it.
The Wyoming Stable Token Commission built FRNT to power near-real-time, cost-efficient transactions, especially cross-border payments. At the same time, it offers the state a new revenue stream.
On-chain data indicates that the stable token has a market cap of $967,053, with over $6,670 monthly transfer volume over the past 30 days.
