Gelato Network is a decentralized network of bots used by web3 developers to automate smart contract executions on public blockchains including Ethereum, Polygon, Fantom, and others. Using Gelato, developers can outsource their web3 DevOps needs so that they can focus exclusively on building their core product.
Why do I need a decentralized Network of bots to automate smart contracts?
Before Gelato, developers would have to build custom bots related to each use case they wanted to automate on their platform. Building, running, and maintaining use case-specific bots to service these systems requires a substantial amount of time & usually leads to the development team becoming the central point of failure within their system.
The vision of Gelato Network is to solve the issues of lacking reliability, sophistication, and centralization around dapps that want to offer automatic smart contract executions within and across multiple blockchain networks in the web3 ecosystem.
Our most notable and long-standing integration is with Instadapp, one of the largest DeFi Asset Management Platforms in the world. The integration began by securing undercollateralized debt positions by refinancing them to other protocols with lower collateral requirements, saving these debt positions from liquidation. Gelato Executors work diligently in the background to monitor the health of positions and spring into action when variables change such as a crashing of ETH’s price.
In April 2021, we debuted Sorbet Finance, Gelato’s "feature playground" that is built on top of Uniswap and Quickswap, which automates trading actions on decentralized exchanges. These actions include what traders already enjoy on centralized counterparts such as Limit Orders as well as Dollar-Cost averaging Strategies and in the future, we intend to add more features built specifically for DeFi such as Liquidity provider management and automated Uniswap v3 rebalancing. All of these functionalities involve automatically executing token swaps based on certain conditions, set by the user) that are executed once those instructions have been met.
Monitoring Uniswap v3 LP positions can be a very time-consuming and complex task, dependent on the user's risk profile. This would require the user to continuously monitor prices and ensure that he is constantly rebalancing his LP position to continue acquiring fees as price moves outside of his current set bounds. With an automated rebalancing strategy, the user can rest assured that not only are his acquired fees automatically reinvested, the Executors keep a close eye monitoring the price, and when the price has exited the set bounds for an extended period of time. When price moves out of a certain range, the LP position manages the ranges between which liquidity should be provided to always provide concentrated liquidity around the current market price. The strategy also automatically reinvests earned fees back into Uniswap to achieve a compounding effect. This is done in a fully decentralized and non-custodial matter using Gelato’s network of bots.
The advantage of this includes that users can sit back and relax as all the difficulties that come with monitoring LP positions are taken care of. In addition, since G-UNI mints an ERC-20 token, it has the capability to be used for liquidity mining schemes to incentivize holders to provide concentrated liquidity around certain price ranges.
On both projects, KeeperDAO and Cono Finance, every time collateral prices start to decline, Gelato automates the repayment user’s debt position on lending protocols such as Aave9 or Compound, to avoid costly collateral liquidations. At the time of the native integration going live, KeeperDAO had $240 million in TVL, now secured via Gelato’s automation infrastructure.
Projects like ETHA Lend use Gelato’s infrastructure to automate the harvesting and reinvestments of rewards earned by their yield farming vaults. These vaults enable users to generate attractive yields for a variety of existing tokens on Polygon. Using Gelato, ETHA Lend can optimize those yields by re-compounding their portfolio every couple of hours automatically.
Disclaimer: The following list of use cases for dapps that could be built on the Gelato Network does not involve a judgment as to the legal requirements (e.g. need of permission or license) a given example might need to comply with under certain jurisdictions.
Becoming the transition layer between multiple blockchain protocols, e.g. conducting multiple trades on a Layer 2 network where network fees are extremely cheap, once completed move funds back to the Ethereum Mainnet and deposit into a Maker Vault to enjoy Ethereum Layer 1 security.
Automated DAO fund management. Provide an instance for DAOs to automatically payout monthly salaries, buy their own Tokens from DEXs via token repurchase programs, moving the funds between certain Layer 1 protocols and back.
From day one, Gelato was envisioned to be an open-source and community-driven project. Gelato is designed to be a protocol owned by the people who use it the most. Making decisions in the Network should be done by all the stakeholders collaboratively giving the power back to the people.
The control of the bots will be diffused to the dapps and the developers that are using Gelato the most by overseeing the protocol and influencing the decisions within the infrastructure of the network. The infrastructure is designed to extract as much value out of the system to ensure that they continue to operate in the best interests of the end-user. With the Gelato DAO, stakeholders of the network will have the power to check, verify and influence these bots continuously certifying that they are operating as intended. Having a stake in the network will allow governance to monitor and regulate the network of bots ensuring that they are playing by the rules set by the DAO to always operate in the best interest of the user.
The Gelato DAO will be powered by the Gelato token (GEL). The Gelato token is the central focal point of all relevant stakeholders in the network. The token exists as a utility for effective incentive alignment amongst the protocol’s participants. Token holders will be able to signal their support for or opposition to Proposals in the Gelato DAO.
The Gelato Token’s (GEL) purpose is two-fold. It is for both governance and Executor coordination. Token holders will have a stake in The Gelato DAO and will plan actions and lead developments in the Gelato Network. In addition, the Gelato token will be used as a tool to both prioritize and hold accountable executors in the Gelato Network by holding Executors accountable while enabling task execution prioritization among them. The Gelato token will be primarily utilized as a coordination mechanism tool that will steer the project into the future, enabling all network participants, from token holders to executioners, to take an active role in governing the system and making sure all their interests are represented and aligned.
For an Executor to service certain use cases and earn fees from doing so, they will have to acquire a certain amount of Gelato tokens before applying to be voted within the network. Requiring Executors to stake creates accountability and incentivizes them to behave in the best interest of the protocol. The higher their stake, the more fees they will be able to earn. Also the more Gelato tokens these Executors acquire to service more tasks, the higher their accountability becomes. This is because if they act in malicious ways that are not in the best interest of the protocol and the end-user, they risk having their stake slashed. This makes any potential "attacks" on the network nonsensical and uneconomical. Not only are these bad actors economically penalized, but they are also susceptible to having their social reputation tarnished creating a more robust and resilient network.
GEL is a pure utility token used for voting on Proposals (governance) and staking for the health of the platform as well as accessing increased performance through infrastructure utilization. The GEL token’s main function is for enhanced usage of the protocol and its prolonged maintenance and development.
The token should not be seen as a speculative financial instrument.
The GEL token contract address on Ethereum mainnet: 0x15b7c0c907e4C6b9AdaAaabC300C08991D6CEA05 View GEL contract address on Etherscan here.
The initial supply of the Gelato Token will be 420,690,000. After two years, additional tokens can be minted if the Token Holders vote in favor of such a proposal. Head over to our Medium post for more details.
We believe everything can be and will be automated. We've been working with the world's leading projects in the blockchain space, from public blockchain protocols to DeFi dapps to wallets.
Aave: Automated Health Factor Maintenance
Furucombo: All-in-one transaction bundler
Instadapp: One of the leading assets management
KeeperDAO: A proxy volatility fund, providing backstop liquidity for on-chain lending and synthetic assets
Polygon: Top Ethereum scaling project
SpookySwap: The leading next-generation Layer 2 on Fantom
SpiritSwap: The leading next-generation Layer 2 on Fantom
Zerion: One of the most popular aggregators powering DeFi with 200K MOU
QuickSwap: One of the largest DEXs on Polygon
and more to come!
We received seed funding from Galaxy Digital, IOSG Ventures, and more.