DeFi Ethereum

Automated DeFi for Everyone: Gelato Releases Alpha “Personal Ethereum Bot”

The Gelato project released the alpha version of their gelato tool, which is designed to "automate ... Ethereum tasks around the clock."
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Automation is a big deal in the Ethereum ecosystem. Why? The blockchain’s decentralized apps rely on automated bots to ping smart contracts under certain conditions, a dynamic that keeps these dApps running smoothly for users.

Yet these bots don’t have to be secluded to the domain of dApps and experts, and that’s where the Gelato Finance project comes in — to help individuals, even non-developers, easily create and run their own personal Ethereum bots.

First unveiled last fall, the Gelato project released the alpha version of their gelato tool, which is designed to “automate … Ethereum tasks around the clock,” on February 4th. The service is meant to give anyone better control of their Ethereum activities, as its builders explained in their Tuesday announcement:

“In short, using gelato gives you access to your own personal Ethereum bot that will execute transactions on your behalf, in principle enabling you to automate your interactions with every decentralized app. And here is the sweet spot: you don’t have to write a single line of code or host any software, and true to DeFi spirit, you still have full custody over all of your funds.”

Young But Still Powerful

As gelato is still in alpha and has yet to be audited, the Gelato Finance team launched the tool with preliminary spending restrictions and feature limitations that won’t be around in later versions.

Even still, the early possibilities are interesting. A gelato “personal bot” can already be used for a myriad of decentralized finance activities, including scheduling transfers, scheduling orders on decentralized exchanges like Kyber, and opening up leverage positions on the Fulcrum dApp.

Moreover, these options are just the start, gelato’s builders have said:

“The listed use cases are merely the tip of the iceberg. There are many apps gelato is planning to integrate next. If you have some cool automation use cases in mind, feel free to bounce them off the gelato team any time.”

Automation Infra Rising

There’s been lots of interesting movement on the automation front in the Ethereum community in recent months.

Consider the Set Protocol, which powers the creation of Sets — “smart basket” portfolio tokens that can routinely rebalance their underlying assets per a given strategy. Recently, Set’s builders rolled out the Set Social Trading service, allowing investors to tokenize trading strategies so that other community members can follow their favorite traders.

To this end, Set Social Trading is an interesting example of how automation can help enhance the human, or rather social, aspects of the cryptoeconomy.

Beyond Gelato and Set Protocol, another interesting automation play in the arena comes via the Staked project’s Robo-Advisor for Yield (RAY) service. Announced last September, RAY leverages a series of smart contracts to “automatically allocate crypto assets to the highest yielding opportunities.”

These projects may be some of the firsts on the scene, but expect more like-minded efforts to arise in the years ahead.

A Big, Unprecedented Advantage

Deutsche Bank, one of the 20 largest banks in existence, has issued a new cryptocurrency-centric report wherein the institution estimated that there may be some 200 million crypto users by the year 2030.

Part of the reason the major bank thinks crypto adoption could boom over the next decade is because blockchain assets are programmable and can be automated, like Sets, and that functionality poses a major advantage over more traditional options that are simply less flexible:

“For investors, crypto-assets have numerous advantages compared to traditional assets, which could lead more and more people to use cryptocurrencies … a cryptocurrency can enable individual assets to be compiled into a composite asset for better return profiles, like a ‘composable token’ or SET protocol.”



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William M. Peaster is a professional writer and editor who specializes in the Ethereum, Dai, and Bitcoin beats in the cryptoeconomy. He's appeared in Blockonomi, Binance Academy, Bitsonline, and more. He enjoys tracking smart contracts, DAOs, dApps, and the Lightning Network. He's learning Solidity, too! Contact him on Telegram at @wmpeaster

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