A Dune Analytics report shows that nearly half of Layerzero applications rely on the lowest level of DVN security. The findings raise concerns about cross-chain risk following recent exploits.
The analysis, conducted over the past 90 days, reviewed roughly 2,665 unique omnichain application (OApp) contracts and their use of Layerzero’s Decentralized Verifier Network (DVN). It found that 47% of these applications rely on a 1-of-1 DVN setup, the minimum threshold required to validate cross-chain messages.
KelpDAO’s rsETH product, which was affected in the incident, falls within the lowest 1-of-1 category, according to the data.
Layerzero’s DVN model allows developers to choose how many independent verifiers are required to confirm transactions across chains. While this flexibility enables customization based on cost and performance, it also introduces trade-offs between efficiency and security.
A 1-of-1 configuration, for example, relies on a single verifier, creating a potential single point of failure. Higher configurations distribute trust across multiple parties but can increase operational complexity and cost.
Other factors, such as the independence of verifier operators, optional security thresholds, and the value of assets being transferred, also play a role. Still, the prevalence of minimal configurations suggests that many developers prioritize simplicity and cost over redundancy.
