#LayerZeroCEOAdmitsProtocolFlaws

LayerZero CEO Bryan Pellegrino publicly stated that the protocol's inability to block or flag the 1/1 security configuration that led to the $292 million Kelp DAO hack on April 18 was a product design and customer communication mistake.

In a statement on social media, Pellegrino noted that no application would assume that such a configuration would secure billions of dollars in TVL, and that this assumption proved to be wrong. He also admitted that the company worsened the crisis by implementing RPC quorum changes without informing affected customers.

This statement came after a lengthy post in which Kelp DAO blamed LayerZero. Kelp had published screenshots showing that the LayerZero team approved the single validator setup. Pellegrino said that Kelp initially used the default multi-validator configuration, then switched to a 1/1 setup, and that the documentation explicitly warned against such usage.

Pellegrino praised the leadership of Aave and DeFi United in their recovery efforts. LayerZero Labs will now focus entirely on asset issuers and the launch of Zero. The protocol also announced that it will not approve cross-chain messages for applications relying on a single validator and is in the process of transitioning such setups to multi-validator configurations.