Smart contract automation network Gelato has become the latest to receive big backing from crypto venture capital giants.

Gelato has raised $11 million in a Series A funding round led by Dragonfly Uppercase and with participation from ParaFi Capital, Nascent, IDEO CoLab Ventures and Aave founder Stani Kulechov.

The funds were raised through a airtight-door token sale and will go toward onboarding more blockchains to the network and increasing its staff from the electric current team of xv.

Gelato automates Ethereum smart contract operations by using what information technology calls "arbitrary logic" and bots. Its nigh prominent use case is addressing liquidity and volatility problems with cryptocurrency trading. The protocol can protect traders from severe losses by automatically rebalancing portfolios and executing trades on their behalf.

Third-political party servers and systems are required to monitor smart contracts and weather for their execution. Gelato does away with the intermediaries by using a decentralized network of bots to conduct out these operations, simplifying decentralized finance (DeFi) for end-users.

Mika Honkasalo of ParaFi Capital explained that:

"Gelato expands the capabilities of smart contracts, which are by default inactive and only execute when a user triggers them."

Gelato co-founder Hilmar Orth elaborated that Web iii.0 developers tin now plug into an existing decentralized network instead of having to write custom bots run on centralized servers.

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

Related: Gelato Network launches 'G-UNI' Uniswap v3 management token

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

In Baronial, Gelato integrated with DeFi aggregator Zerion to improve liquidity management for its users. This enabled Zerion'due south 200,000 or then agile monthly users to have their Uniswap v3 positions managed automatically.