Gelato

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Discover Gelato's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Gelato?

Crypto Gelato (GEL) is a decentralized network token that enables automated smart contract executions using bots as a modular Web3 DevOps service. It is the native and governance token of the Gelato protocol, providing voting power to token holders on the GelatoDAO, which determines network fees and infrastructure operations. Additionally, bot operators must stake GEL to reserve slots for task acceptance, minimizing the risk of bad behavior and ensuring a stable earning yield for stakers.

How is Gelato used?

The crypto Gelato (GEL) is a utility token that plays a central role in the Gelato Network, a decentralized automation protocol. Here are the key ways GEL is used:

Governance

GEL token holders have a say in the future direction of the protocol through voting on proposals in the Gelato DAO. This ensures that stakeholders can influence decisions on fees, developer incentives, and the behavior of Executor bots, which execute transactions in the network.

Staking

Executors must acquire and stake GEL to participate in executing transactions and earning rewards. Staking allows Executors to reserve slots, giving them the exclusive right to earn fees from executing transactions during a specific period. This mechanism incentivizes good behavior and disincentivizes bad actions like censoring or front-running transactions.

Passive Staking

Services similar to Lido are expected to emerge, allowing passive GEL holders to access staking rewards without directly participating in the staking process. These services will charge a fee on the revenue earned by these holders.

Treasury and Supply

The initial supply of GEL is 420,690,000, with the possibility of minting additional tokens if token holders vote in favor of such a proposal. The Gelato Treasury manages the token's supply and distribution.

In summary, GEL is used for governance, staking, and passive staking, ensuring that the Gelato Network operates in the best interests of its users and stakeholders.

How do I store Gelato?

To store Gelato (GEL) tokens, you have several options based on your needs and preferences. Here are the key methods:

  1. Centralized Exchange (CEX):

    • Convenience: Holding your funds on an exchange provides easy access to various investment products and features like spot and futures trading, staking, and lending.
    • Security: The exchange manages your private keys, ensuring your assets are secure.
    • Considerations: Choose a reliable exchange with strict security measures and be aware of potential fees and KYC requirements.
  2. Decentralized Exchange (DEX):

    • Privacy: DEXs offer more privacy as they do not require sign-up or identity verification.
    • Self-Custody: You maintain full control over your assets using self-custodial wallets.
    • Steps:
      • Choose a DEX that supports Gelato (GEL).
      • Buy the base currency (e.g., ETH) on a secure CEX.
      • Transfer the base currency to your web3 wallet.
      • Swap the base currency for Gelato (GEL) on the DEX.
  3. Crypto Wallet:

  • Direct Purchase: Some wallets allow direct fiat-to-crypto purchases.
  • Security: Ensure you have a reliable and reputable wallet that supports Gelato (GEL).
  • Steps:
    • Select a compatible wallet.
    • Download the app or use the browser extension.
    • Create a new wallet or import an existing one.
    • Buy Gelato (GEL) using a supported payment method.
  1. Hardware Wallets:
    • Security: Hardware wallets like Ledger offer enhanced security for storing your Gelato (GEL) tokens.

When choosing a storage method, consider factors such as convenience, security, fees, and your personal preferences.

How to buy Gelato?

To buy Gelato (GEL) tokens, you can follow these steps:

Buying Gelato (GEL) via a Centralized Exchange (CEX)
  1. Choose a CEX: Select a reliable and trustworthy crypto exchange that supports Gelato (GEL) purchases. Consider the ease of use, fee structure, and supported payment methods when choosing a crypto exchange.

  2. Create an Account: Enter the required information and set a secure password. Enable 2FA using Google Authenticator and other security settings to add an extra layer of security to your account.

  3. Verify Your Identity: Complete KYC verification, which may require government-issued identification documents. This step ensures the security of your account.

  1. Add a Payment Method: Follow the instructions provided by the exchange to add a credit/debit card, bank account, or other supported payment method.

  2. Buy Gelato (GEL): You can now buy Gelato (GEL) using fiat currency if supported. Alternatively, you can first purchase a popular cryptocurrency like USDT, and then exchange it for Gelato (GEL).

Buying Gelato (GEL) via a Decentralized Exchange (DEX)
  1. Download a Crypto Wallet: Choose a reliable crypto wallet that supports the blockchain where Gelato (GEL) is listed. For example, you can use Trust Wallet for Ethereum-based DEXs.

  2. Set Up Your Wallet: Register and set up the crypto wallet via the wallet’s Google Chrome extension or mobile app. Make sure to keep your seed phrase safe and note your wallet address.

  3. Buy Ethereum as Your Base Currency: Buy Ethereum on a centralized exchange like Binance and transfer it to your crypto wallet.

  1. Choose a DEX: Select a DEX that supports your wallet and the blockchain where Gelato (GEL) is listed. For example, you can use 1inch with Trust Wallet.

  2. Connect Your Wallet: Connect your crypto wallet to the DEX using your wallet address.

  3. Trade Your Ethereum for Gelato (GEL): Select Ethereum as the payment and Gelato (GEL) as the coin you want to buy. If Gelato (GEL) doesn’t appear, find its smart contract address on Etherscan and paste it into the DEX.

  1. Apply the Swap: Click on the Swap button to complete the transaction.

Remember to always check fees and ensure you are comfortable with the payment processors used by your chosen exchange or wallet.

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History of Gelato

Gelato (GEL) is a cryptocurrency that has been active in the DeFi landscape, particularly on the Ethereum network. The project's history dates back to 2020 when it started as a tool for developers to automate smart contract executions on Ethereum.

Gelato's co-founder, Luis, also known as Gitpusha, has been instrumental in shaping the project. In an interview, Luis discussed the origin story of Gelato, highlighting how it fits into the DeFi landscape and its day-to-day usage examples.

Gelato has been involved in various aspects of DeFi, including gasless transactions, Web3 functions, and account abstraction. The project has also been linked to EIP-4337, an Ethereum proposal aimed at improving the network's functionality.

The GEL token has experienced significant price fluctuations, reaching an all-time high of $4.13 in November 2021. Since then, its price has been erratic, with both highs and lows. Despite this, predictions suggest it could increase by over 116% by the end of 2024.

Gelato's impact on DeFi has been substantial, with many users unknowingly using its products daily. The project continues to evolve, bridging the gap between Web3 and Web2 technologies.

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How Gelato works

Gelato (GEL) is a cryptocurrency token that operates within the Gelato Network, a decentralized protocol designed for Web3 automation. Here's an overview of how it works:

Gelato Network

The Gelato Network is a decentralized network of bots that automate smart contract executions on public EVM-compatible blockchains, including Ethereum, Polygon, Fantom, Arbitrum, BNB Chain, and Avalanche. These bots are used by web3 developers to execute arbitrary smart contract logic, enabling the automation of various functions on these blockchains.

Gelato Token (GEL)

The Gelato token (GEL) is the central utility token of the Gelato Network. It serves several purposes:

  1. Governance: GEL token holders can participate in the Gelato DAO, where they can vote on proposals to shape the future direction of the protocol. This includes setting fees for Executors, deciding on developer incentive schemes, and ensuring that Executors always execute transactions in the best interest of the end-user.

  2. Staking: Executors must acquire and stake GEL tokens to participate in executing transactions and earning rewards. Staking allows Executors to reserve slots, giving them the exclusive right to earn fees from executing transactions during a specific period. Rewards come from transaction fees and market opportunities.

  3. Incentive Alignment: The GEL token aligns the incentives of all participants in the network, ensuring that Executors operate in the best interests of the end-users. This includes disincentivizing bad behavior, such as censoring or front-running transactions, by potentially slashing the stake of misbehaving Executors.

Node Operators and Gas Costs

Gelato Node Operators are compensated 1:1 for the gas costs they incur while executing tasks on behalf of Gelato users. This ensures that Node Operators are incentivized to maintain the network and provide reliable services.

Airdrops and Tokenomics

Gelato occasionally hosts airdrop events, where free tokens are allocated to existing token holders. These events are a way for the project to reward its community and encourage participation.

Token Supply and Treasury

The initial supply of the Gelato Token is 420,690,000. After two years, additional tokens can be minted if token holders vote in favor of such a proposal. The Gelato Treasury is responsible for managing the token supply and ensuring the long-term sustainability of the network.

In summary, the Gelato token (GEL) is a crucial component of the Gelato Network, facilitating governance, staking, and incentive alignment within the decentralized protocol.

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Gelato's strengths

The Gelato Token (GEL) has several strengths that contribute to its potential success:

  1. Governance: The Gelato DAO empowers token holders to participate in decision-making processes, ensuring that the protocol is governed by those who use it the most. This decentralized governance model allows for collaborative decision-making and aligns incentives among stakeholders.

  2. Staking: The staking mechanism incentivizes Executors to participate in the network by earning rewards from transaction fees and market opportunities. This not only increases the number of transactions but also ensures that Executors operate in the best interests of end-users, as they can be penalized for bad behavior.

  3. Scalability: Built on top of the existing Relay infrastructure, Gelato's bundler and paymaster are designed to be scalable and battle-tested. This allows for efficient and cost-effective transaction processing across multiple networks.

  1. Security: Gelato's implementation of ERC-4337 includes MeV protection, ensuring that transactions on the Ethereum Mainnet are executed securely through Flashbots. Additionally, the post-execution settlement of fees prevents overcharging and ensures exact fee amounts.

  2. Community-Driven: Gelato is an open-source project, fostering a community-driven approach where stakeholders can contribute to the protocol's development and direction. This collaborative environment encourages innovation and adaptation to changing market conditions.

These strengths position Gelato Token as a promising cryptocurrency project, offering a robust and decentralized infrastructure for automating smart contract functions.

Gelato's risks

Gelato (GEL) is considered a high-risk investment, primarily due to its market volatility and potential for significant price fluctuations. The token's risk score is based on various factors, including recent changes in volume and market capitalization, which can indicate how easily the price can be manipulated by limited trading activity.

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Did Gelato raise funds?

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Gelato’s team

  • Hilmar Orth: Co-founder of Gelato, known for his expertise in developing the core functionalities of Gelato’s innovative products. He has a strong background in smart contracts and has participated in several high-profile hackathons.
  • Luis Schliesske (Gitpusha): Co-founder of Gelato, also an esteemed developer who has worked closely with Hilmar Orth since their university days. He has been involved in various projects, including a startup focused on smart contracts for large European enterprises.

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