Gelato Raises $11 Million in Serie A Funding
Gelato is conquering the market in its race to automate smart contracts with fellow crypto startups Chainlink and Keep3r, with $11M in funding from investors.
Gelato Network is a protocol that supports automate the accomplishment of smart contracts based on Ethereum, Polygon, Fantom, and other blockchains. The team is seeking to address one of the fundamental challenges of services cooperating with smart contracts, as they now have to rely on outer servers to complete transactions.
However, rather than processing transactions by third parties operating on decentralized servers, developers suggest that Web3 teams replace them with “bots” by connecting to a current decentralized network, within which they can outsource all the demands of Web3 DevOps teams. Gelato CEO Hilmar Orth cited Amazon Lambda and Cloud as examples of services that allow companies to compute without additional hardware costs.
Orth believes that users of the crypto industry today need automated tools that can perform the specific functionality of smart contracts. For example, one of Gelato's clients, InstaDapp, owns a DeFi aggregator that provides debt refinancing options by switching between Compound, MakerDAO, and Aave to ensure the minimum rate and collateral requirements.
The Serie A round was led by Dragonfly Ventures. It was also joined by IDEO CoLab Ventures, Aave, Nascent, and others. The raised funds, according to Gelato representatives, would support even more extra blockchains and double the composition of the project from 15 to 30 people. For the foreseeable future, developers want to add support for Avalanche, Binance Smart Chain, Arbitrum, and Optimism.
After a competitor in the face of Keep3r released its own token, Orth stated that their project needed to come up with its own. As a result, GEL tokens appeared.
Although the head of Keep3r initially accused Chainlink of copying their architecture, a little later he changed his anger for mercy, saying that Gelato, Keep3r, and Chainlink occupy different niches. Therefore, in fact, they are not direct competitors. Orth, in turn, hinted at a possible collaboration with the startup Keep3r.
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