We removed RUNE from Frontier.

Last Friday, we shared a detailed portfolio update. Since then, we’ve made an additional adjustment: Thorchain (RUNE) has been removed from the Frontier strategy.

Thorchain has been declared technically insolvent. Due to issues with its lending product, the protocol now has more debt than assets. To prevent a bank run – where many users try to withdraw funds at the same time – Thorchain has frozen the funds in its lending product. They have now entered a restructuring process to resolve their debt and regain financial stability.

While the core protocol is still functioning, we find the additional risk this poses unjustified. That’s why we’ve decided to remove RUNE and focus on stronger investment opportunities within the Frontier strategy.

As a replacement, we have chosen to invest in Aerodrome (AERO). Aerodrome is the largest liquidity protocol on Base, Coinbase’s Layer 2 blockchain. The protocol plays a key role in the growing DeFi activity on Base and benefits from the increasing adoption of this ecosystem. We see strong network effects and expect Aerodrome to develop into a dominant player in this emerging market.