A Berlin-based startup creating a tech stack for automated Ethereum services, has raised $1.2 million in a seed round led by Polkadot backer IOSG Ventures and crypto merchant bank Galaxy Digital.
Gelato Network announced Tuesday the funding would go towards developing its network infrastructure as well as launching an decentralized autonomous organization that will one day take over governance.
Founded late last year, Gelato is building a product that adds the next stage to smart contracts, allowing Ethereum developers to automate contract execution on their dapps.
Having moved to a live mainnet offering in June, Gelato offers developers programmable bots - software that performs automated tasks online - that can be customized to execute specific transactions for selected smart contracts.
While automated smart contract execution is already available, Gelato says this will be the first such product built entirely on a completely decentralized infrastructure.
One use case for Gelato could be automating repayments on DeFi lending platforms, which makes the loan process seamless and faster, saving borrowers from paying unnecessary interest when they're not online.
The seed round also included commits from Gnosis; two venture DAOs, MetaCartel Ventures and The LAO; and Christoph Jentzsch, who was part of the team that created the original Ethereum DAO back in 2015.Part of the role of the seed investors is to help with the long-term sustainability of the Gelato DAO, which will ultimately allow Ethereum projects to coordinate and identify what services and functions should be automated.
The DAO is scheduled to launch sometime in Q1 2021, Gelato "Legendary Member" Hilmar Orth told CoinDesk.
It's unclear when Gelato anticipates launching its DAO. CoinDesk reached out to the team for comment but hadn't received a response by press time.
In a statement, ISOG founding partner Jocy Lin said Gelato was, among other things, providing some of the "Critical infrastructure" for the still-nascent DeFi space.
Galaxy Digital, IOSG Lead $1.2M Raise for Startup Creating Automated Ethereum Services
Published on Sep 15, 2020
by Coindesk | Published on Coinage
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