LayerZero Partnerships Continue to Haemorrhage Amid ZRO Price Plunge
LayerZero, a blockchain interoperability project, has lost over a dozen partnerships this year. This is according to a recent report from Protos. The loss of these partnerships comes as the ZRO token has shed a third of its value.
The latest departure was Ethereum node service provider Nethermind, which ran one of the verifiers advertised by LayerZero to enterprise users. It migrated to a competitor and terminated its role as verifier on Wednesday.
Other notable departures include Kelp DAO, which exited in May after losing $292 million through a bridge secured by a single LayerZero verifier, and BitGo, which took $7.7 billion of wrapped BTC out of LayerZero's ecosystem in August.
LayerZero was targeted by the Lazarus Group, which poisoned its internal RPCs in April. The incident led to an immediate fallout, with Aave pausing ETH-pegged token markets from LayerZero as depositors rushed for the exits.