ITSA DeFi Insight — Gelato’s automated smart contracts

Lack of automation and middleware

The deployment of bots to perform operations on the blockchain is known as automation. These bots, sometimes known as “keepers,” are an element of the blockchain stack’s middleware infrastructure. The blockchain ecosystem is underpinned by middleware infrastructure, allowing dApps to focus on developing their core products so that end users can connect without interruption. Oracles, which are nodes that transmit information from the outside world and broadcast it on-chain so that smart contracts can use it for various purposes, are among the most well-known types of middleware. The market capitalization of Oracle alone is $9.9 billion, which should offer an idea of how huge the potential market for automation is.

Figure 1: Gelato ecosystem (source: https://mobile.twitter.com/hilmarxo)

Gelato’s Maker use case

The introduction of DAI, a decentralized overcollateralized stablecoin, was one of the first significant applications of automation at the level of smart contracts. The Maker system generates DAI, hence one needs to overcollateralize their assets. Therefore, you would need at least $150 worth of tokens stored in a vault if you wished to borrow $100 worth of DAI. If the assets’ collateralization falls below the collateralization threshold, the owner risks having to pay a fine and have the assets liquidated.

How to set things up?

We want to show how to use Gelato Network and what things to consider. For this example, we will use Moonbeam and Moonriver tokens, both are parachains from Polkadot and Kusama, respectively.

  1. Enter the amount of Moonbeam/Moonriver you’d like to use to fund your Gelato operations account. These funds will be used to pay for gas. Then press Deposit and confirm the transaction in MetaMask
  2. Press “Create Task”
  3. Copy your NFT’s contract address
  4. Paste the contract address to allow the ABI (Application Binary Interface) to be fetched by Gelato
  5. Select the function you’d like to automate. For this example, choose the lick function
  6. The lick function takes a single parameter, namely, the token ID of the NFT to lick. Enter the token ID that corresponds to your ice cream NFT
  7. Choose the automation schedule. You can choose from a time-based schedule or Gelato can automatically execute the function whenever possible
  8. Select Gelato Balance to use your deposited funds to pay for the gas of the automated transactions
  9. Enter a name for your task
  10. Press Create Task and confirm the transaction in MetaMask. Then, sign the next pop-up in MetaMask to confirm your task name
Figure 2: Gelato interface (source: https://app.gelato.network/)

The classification of Gelato according to the ITC

GEL is the Gelato Network's primary token, providing its holders an on-chain governance functionality so they can participate in the decision-making process on how the platform is managed.

Figure 3: The Aave Tokenbase entry (Source: https://itin.itsa.global/VJZ05K666)

The International Token Standardization Association (ITSA) e.V.

The International Token Standardization Association (ITSA) e.V. is a not-for-profit association of German law that aims at promoting the development and implementation of comprehensive market standards for the identification, classification, and analysis of DLT- and blockchain-based cryptographic tokens. As an independent industry membership body, ITSA unites over 100 international associated founding members from various interest groups. In order to increase transparency and safety on global token markets, ITSA currently develops and implements the International Token Identification Number (ITIN) as a market standard for the identification of cryptographic tokens, the International Token Classification (ITC) as a standard framework for the classification of cryptographic tokens according to their inherent characteristics. ITSA then adds the identified and classified token to the world’s largest register for tokens in our Tokenbase.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

Remarks

If you like this article, we would be happy if you forward it to your colleagues or share it on social networks. More information about the International Token Standardization Association can be found on the Internet, on Twitter, or on LinkedIn.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
International Token Standardization Association

International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.