GIF Guide
Lively can play any animated gifs as system wallpaper.
Lively uses native windows 10 image control for gif playback and performance impact is very minimal.
Alternatively mpv player can be used to play gifs, which automatically uses Integer scaling for additional sharpness.
Lively also supports regular picture files (jpeg, png ...) so that you can manage all your wallpapers in one place!
The Gif Player settings is tied to picture player.