Difference between revisions of "Arrakis Finance"

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Built on [[Uniswap (UNI)|Uniswap]] V3, Arrakis deploys automated [[liquidity]] management strategies.
==Basics ==
==Basics ==
* Based in:
* Based in:
*Founded in: [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e 5-2019]
*Founded in: [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e 5-2019]
* [[Mainnet]] release: [https://twitter.com/gelatonetwork/status/1279013156585721856 3-7-2020]
* [[Mainnet]] release: [https://twitter.com/gelatonetwork/status/1279013156585721856 3-7-2020]
*Behind Gelato Network
* A tool for developers to automate [[smart contract]] executions on [[Ethereum]].
== History ==
== History ==
* Started out as just Gelato which [https://blog.gnosis.pm/bots-on-ethereum-if-you-cant-beat-them-join-them-meet-gelato-774f01bec9d7 Allowed] (5-2-2020) users to create a personal bot that automatically interacts with different applications on [[Ethereum]].
* Started out as just Gelato which [https://blog.gnosis.pm/bots-on-ethereum-if-you-cant-beat-them-join-them-meet-gelato-774f01bec9d7 Allowed] (5-2-2020) users to create a personal bot that automatically interacts with different applications on [[Ethereum]].


* From their [[Mainnet]] [https://medium.com/@gelatonetwork/ethereums-automation-protocol-gelato-network-launches-on-mainnet-88647aa10d65 announcement] (3-7-2020):
* From their [[Mainnet]] [https://medium.com/@gelatonetwork/ethereums-automation-protocol-gelato-network-launches-on-mainnet-88647aa10d65 announcement] (3-7-2020):
"''In February 2020 Gelato published its [https://blog.gnosis.pm/bots-on-ethereum-if-you-cant-beat-them-join-them-meet-gelato-774f01bec9d7 Alpha release]. The [[alpha]] hid away most of what Gelato actually is meant to be behind a Web Interface, which meanwhile has been deprecated. This early phase showcased how Gelato can be leveraged to equip end-users with their own IFTTT-like Ethereum bots that can execute arbitrary actions on their behalf, in just one or two [[transactions]], without them needing to write a single line of code. For many users, this opened the door to a new kind of [[decentralized app]] usage — an automated, yet fully non-[[custodial]] one. However, underneath this simple UI a new smart [[contract]] protocol was hiding that now has been audited and deployed onto Ethereum Mainnet."''
"''In February 2020 Gelato published its [https://blog.gnosis.pm/bots-on-ethereum-if-you-cant-beat-them-join-them-meet-gelato-774f01bec9d7 Alpha release]. The alpha hid away most of what Gelato actually is meant to be behind a Web Interface, which meanwhile has been deprecated. This early phase showcased how Gelato can be leveraged to equip end-users with their own IFTTT-like Ethereum bots that can execute arbitrary actions on their behalf, in just one or two transactions, without them needing to write a single line of code. For many users, this opened the door to a new kind of [[decentralized app]] usage — an automated, yet fully non-custodial one. However, underneath this simple UI a new smart contract protocol was hiding that now has been audited and deployed onto Ethereum Mainnet."''
== Audits & Exploits ==
== Audits & Exploits ==


Line 28: Line 26:
* From their [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e blog] (6-5-2021):
* From their [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e blog] (6-5-2021):


''"All [[token]] holders will be able to have a say in the future direction of the protocol via voting on proposals in the Gelato [[Decentralised Autonomous Organisation (DAO)|DAO]]. The goal is that in the long run, developers that use Gelato to automate their smart [[contracts]] functions will govern over the protocol in order to determine the “rules” by which the Executor bots that serve the network have to adhere by. Decisions include setting [[fees]] for Executors, deciding on developer incentive schemes, and enforcing that Executors always execute transactions in the best interest of the end-user."''
''"All token holders will be able to have a say in the future direction of the protocol via voting on proposals in the Gelato [[Decentralised Autonomous Organisation (DAO)|DAO]]. The goal is that in the long run, developers that use Gelato to automate their smart contracts functions will govern over the protocol in order to determine the “rules” by which the Executor bots that serve the network have to adhere by. Decisions include setting fees for Executors, deciding on developer incentive schemes, and enforcing that Executors always execute transactions in the best interest of the end-user."''


== Token ==
== Token ==
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=== Utility ===
=== Utility ===


* [[Governance]], [[Proof-of-Stake (PoS)|staking]] & [[slashing]] ([https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e 6-5-2021])
* Governance, [[Proof-of-Stake (PoS)|staking]] & [[slashing]] ([https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e 6-5-2021])


=== Token Details ===
=== Token Details ===
Line 51: Line 49:
* [https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):
* [https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):


''"The Gelato Network currently supports [[smart contracts]] on Ethereum, [[Polygon]] and [[Fantom (FTM)|Fantom]] and will add additional support for [[Binance]] Smart Chain, [[Arbitrum]], [[Optimism]] and [[Avalanche (AVAX)|Avalanche]].''
''"The Gelato Network currently supports smart contracts on Ethereum, Polygon and [[Fantom (FTM)|Fantom]] and will add additional support for Binance Smart Chain, [[Arbitrum]], [[Optimism]] and [[Avalanche (AVAX)|Avalanche]].''


=== How it works ===
=== How it works ===
Line 57: Line 55:
* [https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):
* [https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):


''"Gelato automates Ethereum smart contract operations by using what it calls “arbitrary logic” and bots. Its most prominent use [[case]] is addressing [[liquidity]] and volatility issues with cryptocurrency trading. The protocol can protect traders from severe losses by automatically rebalancing portfolios and executing trades on their behalf. Third-party servers and systems are required to monitor smart contracts and conditions for their execution. Gelato does away with the intermediaries by using a [[decentralized]] network of bots to carry out these operations, simplifying [[decentralized finance]] ([[Decentralized Finance (DeFi)|DeFi]]) for end-users."''
''"Gelato automates Ethereum smart contract operations by using what it calls “arbitrary logic” and bots. Its most prominent use case is addressing [[liquidity]] and volatility issues with cryptocurrency trading. The protocol can protect traders from severe losses by automatically rebalancing portfolios and executing trades on their behalf. Third-party servers and systems are required to monitor smart contracts and conditions for their execution. Gelato does away with the intermediaries by using a [[decentralized]] network of bots to carry out these operations, simplifying decentralized finance ([[Decentralized Finance (DeFi)|DeFi]]) for end-users."''


=== Fees ===
=== Fees ===
Line 69: Line 67:
* From their [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e blog] (6-5-2021):
* From their [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e blog] (6-5-2021):


''"For Executor bots, in order to be able to participate in executing [[Transaction (Tx)|transactions]] in the Gelato Network and thus earning rewards from doing so, they will need to acquire & [[Proof-of-Stake (PoS)|stake]] $GEL. [[Staking]] will allow executors to [[earn]] the ability to reserve “slots’’ which give them the exclusive right to earn fees from executing transactions in a certain period of time.''
''"For Executor bots, in order to be able to participate in executing [[Transaction (Tx)|transactions]] in the Gelato Network and thus earning rewards from doing so, they will need to acquire & [[Proof-of-Stake (PoS)|stake]] $GEL. Staking will allow executors to earn the ability to reserve “slots’’ which give them the exclusive right to earn fees from executing transactions in a certain period of time.''


''Potentially [[slashing]] the [[stake]] of Executors bots will serve the purpose of disincentivizing bad behavior, such as censoring or [[Frontrunners|front running]] transactions, making such actions uneconomical. The Gelato DAO will have the power to enforce these decisions and the obligation to monitor the behavior of Executors. Executors will become more accountable for their actions which will enable us to further [[Decentralized|decentralize]] who can run these [[Nodes]] as well as providing some interesting future functionalities such as executing transactions based on [[Off Chain|off-chain]] conditions."''
''Potentially [[slashing]] the stake of Executors bots will serve the purpose of disincentivizing bad behavior, such as censoring or [[Frontrunners|front running]] transactions, making such actions uneconomical. The Gelato DAO will have the power to enforce these decisions and the obligation to monitor the behavior of Executors. Executors will become more accountable for their actions which will enable us to further [[Decentralized|decentralize]] who can run these Nodes as well as providing some interesting future functionalities such as executing transactions based on [[Off Chain|off-chain]] conditions."''


=== Interoperability ===
=== Interoperability ===
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== Privacy Method ==
== Privacy Method ==
== Their Other Projects ==
== Their Other Projects ==
=== Arrakis Finance (SPICE) ===
* [https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r From] [[Bankless DAO (BANK)|Bankless]] (15-4-2022):
''"[https://arrakis.finance/ Arrakis] (formerly known as G-UNI) is a [[Uniswap (UNI)|Uniswap]] V3 [[liquidity]] management protocol. A recent spin-off of Gelato, a smart contract automation network, Arrakis solves several key pain points that come with providing liquidity to and building atop [[Uniswap]] V3.'' ''As experienced [[DeFi]] users will know, Uniswap V3 utilizes a concentrated liquidity model. Rather than do so across all price ranges, as is default with Uniswap v2, an LP on V3 can “concentrate” their liquidity by only providing it across select price ranges of their choosing. While this greatly improves capital efficiency, it substantially increases the [[difficulty]] of market making on the exchange, as it magnifies the risk of [[Impermanent Loss (IL)|impermanent loss]]. In addition, due to the differentiation in price ranges selected per [[liquidity provider]], V3 [[Liquidity Provider (LP)|LP]] [[tokens]] are represented by [[ERC721|ERC-721]] [[Non Fungible Tokens (NFTs)|NFTs]] rather than the more composable [[ERC20 tokens|ERC-20 tokens]].''
''Arrakis [https://docs.gelato.network/introduction/readme solves] this by providing the ability for protocols to access a suite of different automated strategies for providing liquidity for their token on V3.'' ''This includes the ability to provide over a “full range,” allowing LPs to get a similar experience and risk profile to doing so on Uniswap V2. Arrakis also enables increased composability by converting LP positions from ERC-721s into ERC-20s known as G-UNI tokens.'' ''In doing so, it increases the ease for other protocols to build on Uniswap V3, as ERC-20s are far more composable than their NFT counterpart. We’ve already seen this in effect, as users can [https://twitter.com/joey__santoro/status/1484268608041590788 borrow] against G-UNI tokens within Rari Capital’s [[Fuse]], allowing them to access increased capital efficiency along while simultaneously earning trading fees.''
''Arrakis has experienced significant adoption, with more than [https://defillama.com/protocol/arrakis-finance $465 million] in [[Total Value Locked (TVL)|TVL]] and counting protocols such as [[Frax Finance (FRAX)|Frax]], [[Fei Protocol (FEI)|Fei]] and [[Aave (AAVE)|Aave]] among their customers.''
''Like [[Curve Finance (CRV)|CRV]], the protocol will utilize a vote-escrow model in which tokenholders can lock their SPICE to receive xSPICE. With xSPICE, holders will be entitled to cash [[flow]] from protocol revenue, 25% of fees earned from providing liquidity, the ability to vote on SPICE emissions that are allocated across different pools, as well as boosted rewards when LPing to said pools. Given this token design, the launch of SPICE could potentially kickstart “The Uniswap Wars,” which could see [[DAOs]] accumulate the token to build up liquidity on the exchange. Were that to be the case, it would also be prudent for investors to pay close attention to the Arrakis ecosystem to identify the “[[Convex (CVX)|Convex]],” i.e. the protocol that offers a liquid [[derivative]] of xSPICE."''
== Roadmap ==
== Roadmap ==
* Can be found [Insert link here].
* Can be found [Insert link here].
Line 100: Line 85:
=== Projects that use or built on it ===
=== Projects that use or built on it ===


* [https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r From] [[Bankless DAO (BANK)|Bankless]] (15-4-2022):
* [https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):
''"Arrakis has experienced significant adoption, with more than [https://defillama.com/protocol/arrakis-finance $465 million] in [[Total Value Locked (TVL)|TVL]] and counting protocols such as [[Frax Finance (FRAX)|Frax]], [[Fei Protocol (FEI)|Fei]] and [[Aave (AAVE)|Aave]] among their customers."''
*[https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):


''"The Gelato Network currently supports smart contracts on [[Ethereum (ETH)|Ethereum]], [[Polygon (MATIC)|Polygon]] and [[Fantom (FTM)|Fantom]] and will add additional support for [[Binance|Binance Smart Chain]], [[Arbitrum]], [[Optimism]] and [[Avalanche (AVAX)|Avalanche]]. Several projects are already using the system to automate contracts, including [[Maker DAO|MakerDAO]], [[InstaDapp (INST)|Instadapp]], [[B.Protocol (BPRO)|B Protocol]] and [[QuickSwap (QUICK)|QuickSwap]].''
''"The Gelato Network currently supports smart contracts on [[Ethereum (ETH)|Ethereum]], [[Polygon (MATIC)|Polygon]] and [[Fantom (FTM)|Fantom]] and will add additional support for [[Binance|Binance Smart Chain]], [[Arbitrum]], [[Optimism]] and [[Avalanche (AVAX)|Avalanche]]. Several projects are already using the system to automate contracts, including [[Maker DAO|MakerDAO]], [[InstaDapp (INST)|Instadapp]], [[B.Protocol (BPRO)|B Protocol]] and [[QuickSwap (QUICK)|QuickSwap]].''
Line 124: Line 107:
*[https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):
*[https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):


''"Gelato has raised $11 million in a Series A funding round led by [[Dragonfly Capital Partners|Dragonfly Capital]] and with participation from [[ParaFi Capital]], Nascent, [[IDEO|IDEO CoLab Ventures]] and [[Aave (AAVE)|Aave]] founder [[Stani Kulechov]]. The funds were raised through a closed-door token sale and will go toward onboarding more [[blockchains]] to the network and increasing its staff from the current team of 15."''
''"Gelato has raised $11 million in a Series A funding round led by [[Dragonfly Capital Partners|Dragonfly Capital]] and with participation from [[ParaFi Capital]], Nascent, [[IDEO|IDEO CoLab Ventures]] and [[Aave (AAVE)|Aave]] founder [[Stani Kulechov]]. The funds were raised through a closed-door token sale and will go toward onboarding more blockchains to the network and increasing its staff from the current team of 15."''


=== Partners ===
=== Partners ===
[[Category:Companies/Organisations]]
[[Category:Companies/Organisations]]

Revision as of 07:21, 1 November 2022

Basics

History

  • Started out as just Gelato which Allowed (5-2-2020) users to create a personal bot that automatically interacts with different applications on Ethereum.

"In February 2020 Gelato published its Alpha release. The alpha hid away most of what Gelato actually is meant to be behind a Web Interface, which meanwhile has been deprecated. This early phase showcased how Gelato can be leveraged to equip end-users with their own IFTTT-like Ethereum bots that can execute arbitrary actions on their behalf, in just one or two transactions, without them needing to write a single line of code. For many users, this opened the door to a new kind of decentralized app usage — an automated, yet fully non-custodial one. However, underneath this simple UI a new smart contract protocol was hiding that now has been audited and deployed onto Ethereum Mainnet."

Audits & Exploits

Bugs/Exploits

"Gelato G-UNI Router vulnerability, $26 million secured with no funds lost, alerted by samczsun, revoke approvals given to vulnerable contract."

Governance

Admin Keys

DAO

  • From their blog (6-5-2021):

"All token holders will be able to have a say in the future direction of the protocol via voting on proposals in the Gelato DAO. The goal is that in the long run, developers that use Gelato to automate their smart contracts functions will govern over the protocol in order to determine the “rules” by which the Executor bots that serve the network have to adhere by. Decisions include setting fees for Executors, deciding on developer incentive schemes, and enforcing that Executors always execute transactions in the best interest of the end-user."

Token

Launch

Token allocation

Utility

Token Details

Stablecoin

Coin Distribution

Tech

  • Whitepaper can be found [insert here].
  • Code can be viewed here (11-7-2020).

Implementations

"The Gelato Network currently supports smart contracts on Ethereum, Polygon and Fantom and will add additional support for Binance Smart Chain, Arbitrum, Optimism and Avalanche.

How it works

"Gelato automates Ethereum smart contract operations by using what it calls “arbitrary logic” and bots. Its most prominent use case is addressing liquidity and volatility issues with cryptocurrency trading. The protocol can protect traders from severe losses by automatically rebalancing portfolios and executing trades on their behalf. Third-party servers and systems are required to monitor smart contracts and conditions for their execution. Gelato does away with the intermediaries by using a decentralized network of bots to carry out these operations, simplifying decentralized finance (DeFi) for end-users."

Fees

Upgrades

"Gelato v2 is a major upgrade for the platform with features that make developers lives easier."

Staking

  • From their blog (6-5-2021):

"For Executor bots, in order to be able to participate in executing transactions in the Gelato Network and thus earning rewards from doing so, they will need to acquire & stake $GEL. Staking will allow executors to earn the ability to reserve “slots’’ which give them the exclusive right to earn fees from executing transactions in a certain period of time.

Potentially slashing the stake of Executors bots will serve the purpose of disincentivizing bad behavior, such as censoring or front running transactions, making such actions uneconomical. The Gelato DAO will have the power to enforce these decisions and the obligation to monitor the behavior of Executors. Executors will become more accountable for their actions which will enable us to further decentralize who can run these Nodes as well as providing some interesting future functionalities such as executing transactions based on off-chain conditions."

Interoperability

Other Details

Oracle Method

Privacy Method

Their Other Projects

Roadmap

  • Can be found [Insert link here].

Usage

  • Has been securing and automatically managing positions worth over $180M (6-5-2021).

Projects that use or built on it

"The Gelato Network currently supports smart contracts on Ethereum, Polygon and Fantom and will add additional support for Binance Smart Chain, Arbitrum, Optimism and Avalanche. Several projects are already using the system to automate contracts, including MakerDAO, Instadapp, B Protocol and QuickSwap.

In June, Gelato introduced an automated liquidity manager for Uniswap called G-UNI, which combined the capital efficiency of Uniswap v3 with the user experience of v2.

In August, Gelato integrated with DeFi aggregator Zerion to improve liquidity management for its users. This enabled Zerion’s 200,000 or so active monthly users to have their Uniswap v3 positions managed automatically."

Competition

Pros and Cons

Pros

Cons

Team, Funding, Partners

Team

Funding

"Gelato has raised $11 million in a Series A funding round led by Dragonfly Capital and with participation from ParaFi Capital, Nascent, IDEO CoLab Ventures and Aave founder Stani Kulechov. The funds were raised through a closed-door token sale and will go toward onboarding more blockchains to the network and increasing its staff from the current team of 15."

Partners 

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