(Ryan Quintal/Unsplash, modified by CoinDesk)
A new decentralized finance (DeFi) “money Lego” will allow app developers to make it possible for users to automate their transactions. Called Gelato, the protocol moved from alpha to a on Ethereum’s mainnet on July 3.
And, according to a blog post shared early with CoinDesk, decentralized exchange (DEX) Gnosis will be the first major platform to integrate Gelato, allowing users to swap and withdraw tokens in a “seamless Uniswap-like UX.”
“It’s a network that transacts on behalf of users or even dapps themselves, based on some conditions, like price or the collateralization ratio of a debt position,” Gelato co-founder Hilmar X. Orth told CoinDesk.
In short, the project gives developers simple infrastructural pieces to plug DeFi into decentralized applications (dapps).
Gnosis did not return requests for comment by press time.
Blockchains do not easily lend to trading without a little tech wizardry. They are slow and expensive to keep up, and users must bid against one another to record a transaction on the ledger.
Regardless of the difficulties, DeFi projects have attempted to build a new financial system on top of blockchains because of their other valuable features, namely their permissionless nature. The Ethereum blockchain has been a common choice for DeFi – quickly approaching or pledged, as collateral – for numerous reasons, mostly boiling down to Ethereum’s rich programming language which makes building projects easier.