In order to use an animated GIF for your live wallpaper, you'll need to convert it to a Live Photo first. While Apple did add GIF support in the Photos app, they did not add GIF support to the wallpaper settings. But that's easy enough to accomplish using GIPHY for iOS.
Convert Gif To Screensaver Iphone
Edit button disappeared.Figured it out on my own.In case anyone is interested in how to convert an animated gif into a screen saver, the easiest method I've found is (1) using a program like Macromedia Flash to open the animated gif and save it as a SWF, then (2) using a program called InstantStorm to open the SWF and make it into a screen saver.