Wordnet 3.0
VERB (2)
1. 
 arrange according to grades; 
- Example: "These lines are gradated"2. 
 pass imperceptibly from one degree, shade, or tone into another; 
- Example: "The paint on these walls gradates but you don't see it"
The Collaborative International Dictionary of English v.0.48:
Gradate \Gra"date\, v. t. [See Grade.]
   1. To grade or arrange (parts in a whole, colors in painting,
      etc.), so that they shall harmonize.
      [1913 Webster]
   2. (Chem.) To bring to a certain strength or grade of
      concentration; as, to gradate a saline solution.
      [1913 Webster]
WordNet (r) 3.0 (2006):
gradate
    v 1: arrange according to grades; "These lines are gradated"
    2: pass imperceptibly from one degree, shade, or tone into
       another; "The paint on these walls gradates but you don't see
       it"