LayerZero to axe 14 low-activity chains after KelpDAO exploit – Details

Cross-chain interoperability provider LayerZero will withdraw off-chain support for 14 low-activity chains, including Arbitrum Nova. 

In its latest statement, the firm said that its DVN (decentralized verifier network) and Executors, collectively responsible for off-chain communication between different chains, will be deprecated for the 14 chains. 

The affected networks include Cronos zkEVM, Degen, Skale Europa, Superposition, Shrapnel, and more. As a result, some assets, including stablecoins (USDT and USDC) across these chains, could be stranded if not moved before the full shutdown.

According to LayerZero, the off-chain support will be axed in 30 days (by September). 

Since July, LayerZero has flagged over 30 chains with low activity, including the recently shut BounceBit. Although the move is positioned as operational efficiency, security risk and competition seem to be key reasons behind the aggressive shift. 

Chainlink CCIP traction threatens LayerZero

LayerZero has massive financial backing, including top-tier VC firms such as Sequoia Capital, a16z (Andreessen Horowitz), Binance Labs, and Coinbase Ventures. 

And the bet was simple: bridge the fragmented liquidity across various blockchains. But the KelpDAO’s $292M hack, one of the largest DeFi exploits in 2026, triggered a massive fallout.