Gelato aims to simply DeFi by automating smart contract operations and helping users rebalance their portfolios.
Smart contract automation network Gelato has grow to be the most recent to receive big backing from crypto venture capital giants.
Gelato has raised $11 million in a Collection A funding round led by Dragonfly Capital and with participation from ParaFi Capital, Nascent, IDEO CoLab Ventures, and Aave founder Stani Kulechov.
The funds were raised by a closed-door token sale and will go toward onboarding more blockchains to the community and growing its workers from the present crew of 15.
Gelato automates Ethereum smart contract operations through the use of what it calls “arbitrary logic” and bots. Its most distinguished use case is addressing liquidity and volatility points with cryptocurrency trading. The protocol can protect merchants from severe losses by automatically rebalancing portfolios and executing trades on their behalf.
Third-party servers and techniques are required to monitor smart contracts and conditions for their execution. Gelato does away with the intermediaries by using a decentralized network of bots to hold out these operations, simplifying DeFi for end users.
Mika Honkasalo of ParaFi Capital defined that:
“Gelato expands the capabilities of smart contracts, which are by default inactive and only execute when a person triggers them.”
Gelato co-founder Hilmar Orth elaborated that Web 3 developers can now plug into an existing decentralized network as a substitute for having to write custom bots run on centralized servers.
The Gelato Network at the moment helps smart contracts on Ethereum, Polygon and Fantom and will add extra support for Binance Smart Chain, Arbitrum, Optimism, and Avalanche. A number of initiatives are already utilizing the system to automate contracts together with MakerDAO, Instadapp, B Protocol, and QuickSwap.
In June, Gelato launched an automatic liquidity manager for Uniswap known as G-UNI which mixed the capital efficiency of Uniswap v3 with the user experience of v2.
In August, Gelato integrated with DeFi aggregator Zerion to improve liquidity management for its users. This enabled Zerion’s 200,000 or so energetic monthly users to have their Uniswap v3 positions managed automatically.
Source: Cointelegraph