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    author
    Heechang
    10 Days Ago

    The Synergy Between Exchanges and LayerZero Begins with DVN

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    LayerZero’s DVN – Giving Projects Sovereignty Over Multichain Security

    Source: DVN Providers | LayerZero

    Today, Nodeit - a development arm under Dunamu (operator of Upbit) - announced that it has joined LayerZero’s Decentralized Verifier Network (DVN) as an operator. The DVN is the core component that verifies the integrity and accuracy of messages transmitted between two blockchains.

    Each project can freely select the DVNs it trusts and connect them to any blockchain of choice. For instance, USDT0, the multichain version of Tether, leverages DVNs operated by both the USDT0 team and LayerZero Labs to verify messages across multiple chains. This allows the USDT0 team to directly authorize and manage issuance and transfers across chains. For Paypal PYUSD, Paxos, the issuer of PYUSD, runs the DVN.

    This structure is not limited to token issuers. It also applies to blockchains such as Mantle, Ondo Chain, and BeraChain, as well as onchain applications like Stargate and Superform.

    In essence, entities that are directly accountable for cross-chain message integrity - token issuers, blockchains, and applications - can now operate or delegate their own DVNs to trusted partners, thereby gaining sovereignty over their own security.

    LayerZero’s message endpoints are immutable on each chain. Thus, by integrating DVNs, operators can build independent security stacks without relying further on LayerZero itself. Current DVN operators can generally be categorized as follows:

    1. Self-operated – run by blockchains, onchain applications, or token issuers

    2. Enterprise-operated – run by trusted corporations such as Google Cloud or Republic

    3. Technical infrastructure providers – node and blockchain infrastructure specialists

    4. Cross-protocol operators – leveraging other messaging frameworks for verification

    Exchanges and LayerZero DVN – The Start of a Strategic Synergy

    Source: LayerZero Documentation | LayerZero

    The key takeaway from this announcement is that Nodeit, a subsidiary under Lambda256 and part of Dunamu (the operator of Upbit), is joining LayerZero’s DVN ecosystem.

    This marks more than a technical partnership - it represents the first step of exchanges entering the multichain interoperability stack as core participants.

    As exchanges increasingly hold OFT-based assets such as Tether (USDT), Ethena (USDe), PayPal (PYUSD), and LayerZero (ZRO), participation in DVN networks will become essential. While exchanges do not need to verify messages across every chain, they must possess the ability to intervene directly when issues arise.

    Furthermore, participating in multiple DVN verifications can greatly enhance multichain flexibility. For example, if an exchange joins the DVN for USDT0, it could seamlessly support a much wider set of chains. While traditional USDT operates on around 15 mainnets, USDT0 already supports over 15 addition to 15 chain supported by USDT. By acting as a DVN verifier, exchanges could expand chain coverage rapidly without overhauling existing infrastructure.

    The Expansion of DVN – From Verification to Data and Services

    Source: Industry Leaders Build with lzRead | by LayerZero | LayerZero Ecosystem | Medium

    The potential of DVNs extends far beyond simple message verification. LayerZero’s lzRead framework, introduced last year, enables DVNs to process both onchain and offchain data - essentially functioning like an oracle layer.

    If exchanges were to utilize this to publish internal pricing data or transparency metrics onchain, DeFi protocols could access more reliable and verifiable price feeds. In this way, DVNs could evolve into dual-function infrastructure serving as both data providers and verifiers.

    The synergy with LayerZero’s recently launched OVault framework is also noteworthy. OVault enables users to deposit assets on one chain and claim yield on another creating a universal cross-chain deposit infrastructure. If exchanges offered staking or yield programs (e.g., Ethena’s USDe deposit) using OVault, users could deposit and receive yield seamlessly across chains. This would allow exchanges to expand their onchain services safely and modularly across multiple blockchains.

    Exchanges already sit at the center of every chain and asset. They must constantly onboard new chains, monitor asset flows, and maintain liquidity across fragmented ecosystems. As the pace of chain launches accelerates, exchanges have effectively become the gateways of interoperability in the digital asset economy.

    Therefore, joining LayerZero’s open and neutral DVN infrastructure is not just a technical move - it is a strategic step for exchanges to secure sovereignty in the multichain era.

    Nodeit’s participation in the DVN network may well be the first step toward that future.

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