Wyoming Ditches LayerZero for Chainlink on State Stablecoin After Security Review

The Wyoming Stable Token Commission has completed its migration of the Frontier Stable Token (FRNT) away from LayerZero's infrastructure. This move is a result of a security review that was initiated after a $292 million exploit on a LayerZero bridge used by the decentralized finance protocol KelpDAO in April.

The commission compared LayerZero, Chainlink's Cross-Chain Interoperability Protocol (CCIP), and other alternatives across six categories. CCIP met the commission's strict security requirements, which included SOC 2 Type 2 certification reviewed by a Big Four accounting firm, 50 security audits, and verification distributed across 16 independent node operators on every supported chain.

The Wyoming Stable Token Commission chose Chainlink due to its operational track record during market stress tests and its ability to secure roughly 70% of decentralized finance activity. The commission can also change infrastructure without rebuilding FRNT from scratch due to the Cross-Chain Token standard, which gives them control over contracts, token pools, policies, and implementation logic.

LayerZero's co-founder and CEO Bryan Pellegrino pushed back against some of the commission's claims, stating that they had followed Wyoming's instructions for deploying FRNT on Solana. However, the commission proceeded with the full migration, citing structural weaknesses in LayerZero's model, including limited independent verifier options.