Gelato Network has announced a strategic partnership with Factor.Fi, a decentralized platform that enables developers to develop new DeFi products.
Through the collaboration, Gelato Network and Factor.Fi created a new DeFi environment that enables users to automate and simplify decentralized finance trading.
Gelato, a blockchain-based platform that automates smart contracts on various blockchains, disclosed the development through its X account. The integration is a good example of what is popularly known as composability, a trend that is transforming the DeFi world.
Gelato Functions Automate DeFi Strategies on Factor!@Factor_fi merges Lego's creativity & Shopify's e-commerce logic into a single DeFi Composability layer.Mix-and-match protocols like @aave, @Uniswap & more to create automated & permissionless DeFi strategies in 1-Click! ↓ pic.twitter.com/y9vyBkg3Kz
— Gelato (@gelatonetwork) December 9, 2024
Omni-chain trading experience
With the integration, both Factor.Fi and Gelato Network users now access a huge shared omni-chain liquidity that supports multiple DeFi protocols. These include dominant DeFi platforms like AAVE, Uniswap, and many more as well as a strong trading volume powered by Gelato’s and Factor’s infrastructures.
With the new alliance, users now engage with a new model in DeFi trading where AI-driven automation and a massive liquidity base unlock new possibilities for portfolio optimization.
Users can seamlessly deploy their preferred automated trading tools to enjoy unparalleled omni-chain trading driven by Gelato and Factor networks. This includes perpetual contracts that allow users to trade over 70 assets with leverage. Users can automate trading bots execute to trade or rebalance portfolios based on market conditions, minimizing the need for constant manual adjustments.
The shared infrastructure also provides in-depth liquidity, tight spreads, and less slippage across multiple trading pairs running on multiple chains. The collaboration holds marvelous advantages for both Gelato Network and Factor.Fi. The two platforms benefit from ecosystem growth, increasing interoperability across multiple protocols, resulting in greater trading volume and expanded user activities.
Composability gaining traction in the DeFi sector
It is interesting how cryptocurrency has revolutionized finance in just over a decade. However, its power comes from an underrated concept – composability. This is not about trending crypto tokens or vial meme coins. It is an innovative collaboration of decentralized protocols.
Gelato Network is popularly known for automating smart contract executions on Ethereum and beyond. On the other hand, Factor.Fi builds innovative DeFi apps and strategies with ease.
By teaming up to bring automation into DeFi operations, these projects are outstanding, more powerful, and unbeatable. This is what composability means. Protocols working together and developing something completely new like automated earning yields across networks, unlocking liquidity on several chains, and many more.
The most important thing about composability is that it expands the utility of projects. Integration of chains unlocks remarkable growth. In the last quarter, composable protocols witnessed an increase of their Total Value Locked by 80%, driven by integrations like Gelato Network leveraging Factor.Fi for cross-chain efficiency.
Why it matters?
Composability is a crucial innovation within the DeFi sector. It allows protocols to function together like seamlessly matched activities across multiple blockchains.
At its heart, composability means that blockchains can collaborate and build on each other, which develops an ecosystem for new possibilities. Chains like Gelato Network and Factor.Fi share assets, data, and functionality without hurdles. Smart contracts communicate with one another. Liquidity moves without constraints and everything moves efficiently.
Composability is important because it reduces redundancy, spurs innovation, and bolsters capital efficiency. Advanced applications, such as liquidity aggregation draw funds from different networks, decreasing idle capital.
