Gelatinous lichens are lichens in which the phycobiont (The principal symbiont ) is a cyanobacterium. 
Cyanobacteria is a large and varied group of bacteria which possess chlorophyll and which carry out photosynthesis. Having cyanobacteria as their photosynthetic partners they produce a polysaccharide that absorbs and retains water.  They become gelatinous when wet and brittle when dry.

Gelatinous lichen Jelly lichen-1.JPG

Gelatinous lichen.JPG