Gelato raises $11M from heavyweight backers for Web 3 automation

Gelato aims to simply DeFi by automating smart contract operations and helping users rebalance their portfolios.

Smart contract automation network Gelato has become the most recent to receive huge backing from crypto risk capital giants.

Gelato has raised $11 million during a Series 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 through a private token sale and can go toward onboarding additional blockchains to the network and increasing its employees from this team of 15.

Gelato automates Ethereum smart contract operations by using what it calls “arbitrary logic” and bots. Its most distinguished use case is addressing liquidity and volatility problems with cryptocurrency trading. The protocol will protect traders from severe losses by automatically rebalancing portfolios and executing trades on their behalf.

Third-party servers and systems are needed to observe smart contracts and conditions for his or her execution. Gelato will away with the intermediaries by using a decentralized network of bots to hold out these operations, simplifying DeFi for finish users.

Mika Honkasalo of ParaFi Capital explained that:

“Gelato expands the capabilities of smart contracts, which are by default inactive and only execute when a user triggers them.”

Gelato co-founder Hilmar Orth detailed that web three developers will currently plug into an existing decentralized network rather than having to write custom bots run on centralized servers.

The Gelato Network presently supports good contracts on Ethereum, polygon and Fantom and can add further support for Binance good Chain, Arbitrum, Optimism, and Avalanche. many comes are already using the system to change contracts as well as MakerDAO, Instadapp, B Protocol, and QuickSwap.

Related: Gelato Network launches ‘G-UNI’ Uniswap v3 management token

In June, Gelato introduced an automated liquidity manager for Uniswap called G-UNI which combined 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 active monthly users to have their Uniswap v3 positions managed automatically.