On-chain Transactions

Retrieving on-chain raw Transaction data is fairly easy, but understanding the kind of financial activity which lays behind requires further analysis and data processing, which is where Merlin comes in.

Semantically categorizing 500+ million smart contracts, Merlin brings a comprehensive understanding of their capabilities and usage.

Transactions list in Merlin web APP

Merlin on-chain Transactions data clearly identifies:

• The initiator and beneficiary: wallet to wallet, wallet to smart contract (DeFi protocols)

• The asset(s) moved: single or multi-movements precisely detailed, moved tokens type (ERC-20, ERC-721, ERC-1155), their balances and USD valuations, potential scam activity

• The type of financial action: basic token transfer, NFT minting or sales, DeFi deposits / withdrawals / reward collection into Farming, LP, Staking, …, DeFi Lending & Borrowing (loan, borrow, repay loan, liquidation,..)

• The transaction fees involved: token balance with USD valuation, imputed to the user or not, and their breakdown

• For DeFi investment activities, the P&L: a USD valued P&L considering Price Fluctuation, Yield & Rewards, Tx Fees, eventual Impermanent Loss

Transaction details in Merlin web APP

Merlin curated, comprehensive and pre-classified Transactions data finds its use cases for: Portfolio Tracking solutions, Fund Administration Reports, Custody & Wallet activity tracking, Treasury Management, Accounting, Audit and Tax.

Transaction Classification

The Transactions classification information is spread across several parameters:

• Transaction Type: custom transaction type (applicative transaction type) in part automatically identified by Merlin classification engine, and by the operator managing transaction via Merlin web APP

• Type of Movement: incoming or outgoing, deposit / withdrawal / .. when interaction with DeFi protocols, airdrop, mint, ...

  • txType in API transactions data

• DeFi Action: type of DeFi investment Lending, LP DEX, Staking, ...

  • txAction in API transactions data

• Interaction with:

  • Smart contract information: name and function name; for eventual 3rd party processing of specific known transactions/smart contracts not covered by Merlin

  • DeFi Protocol: name of the protocol (dApp) with which the wallet is interacting

  • Wallet: detecting wallet to wallet interactions

• Token moved: token standard ERC20, ERC721 or ERC1155

• Potential Scam true or false

Transaction Type - txClassification

Custom transaction type automatically identified by Merlin classification engine, which relies on an extensive processing (ML based) of several transaction data (movement type, DeFi action, type of assets exchanged, interaction with wallet / smart contract / protocol, ...). Possible values:

DeFi Investments	Description
LP Deposit	Deposit tokens in Liquidity Pool DEX position
LP Withdraw	Withdraw tokens from Liquidity Pool DEX position
Staking Deposit	Deposit tokens in Staking position
Staking Withdraw	Withdraw tokens from Staking position
Staking Rewards	Withdraw tokens from Staking position
Lend Deposit	Deposit tokens in Lending position
Lend Withdraw	Withdraw tokens from Lending position
Borrow	Withdraw tokens from Borrowing position: borrow token against collateral
Repay	Deposit tokens in Borrowing position and withdraw collateral
Liquidation	Liquidation from a Borrowing position, when collateral value doesn’t cover the borrowed assets value
Deposit	Deposit in a DeFi protocol other than the above
Withdraw	Withdraw from a DeFi protocol other than the above
Collect Interest	Collect Yield from a DeFi protocol
Collect Reward	Collect Incentive Rewards from a DeFi protocol
Exchange	Swap token A for token B within a DEX
Wrap	Exchange token for wrapped token
Unwrap	Exchange wrapped token for token

Transfers	Description
Transfer Out	User sends token(s), outgoing transfer
Transfer In	User receives token(s), incoming transfer
Bridge Out	Bridge token from chain A to chain B; outgoing A to B
Bridge In	Bridge token from chain A to chain B; incoming from A to B
Income Expense Out Expense In Receive Donation Send Donation Spouse Transfer	Via Merlin web APP only Transfers requiring user manual classification

Miscellaneous	Description
Airdrop	Receive a token on wallet as Airdrop
NFT Exchange	Swap NFT A for NFT B
NFT Mint	Mint an NFT
Scam	Transaction involving potential scam tokens, smart contracts
ICO IDO Mint Lost Stolen Other Exclude	Via Merlin web APP only Movements requiring user classification

Movement Type - txType

Type of movement, automatically identified by Merlin. Possible values:

txType	Description
Deposited	Deposit tokens on a position (LP, lend, liquid staking, farming, …)
Withdrew	Withdraw tokens from a position (LP, lend, liquid staking, farming, …)
Borrowed	Borrow tokens, in exchange provide collateral tokens
Repaid	Pay-back borrowed assets
Liquidation	In case of undercollateralized loans, smart contract sells crypto assets (borrow collaterals) to cover the debt
Exchange	Swap a crypto asset for another, via Dexes; NFT purchase or sale
Claim	Withdraw Rewards / Yield from an investment/protocol (dApp)
Distribute Rewards	Proactively receive rewards from an investment/protocol (dApp)
Transfer	Sell or transfer property of an LP position, or funds moving out of / into the wallet outside the scope of any of the above transaction types
Migration	Tokens / investments which are transformed into other tokens / investments following external factors (fork, protocol decisions, …) - for exceptional market events
Harvest
Airdrop	Wallet receives a token on wallet as Airdrop
Mint	NFT token minted
Burn	NFT token burned; applies to Solana
Receive	If wallet to wallet interaction: send tokens from the user wallet to another wallet; or eventual NFT transaction with NFT being received (no cost involved)
Send	If wallet to wallet interaction: receive tokens in the user wallet from another wallet; or eventual NFT transaction with NFT being sent (no cost involved)
Bridge Out	Bridging from chain A to chain B, action of bridging out chain A
Bridge In	Bridging from chain A to chain B, action of bridging in chain B
Wrap	Exchange token for wrapped version of the token
Unwrap	Exchange wrapped token for token
Smart contract function name	For transactions outside the Transaction Supported Protocols list, API data txType takes the smart contract's function name

Action - txAction

Indicates the type of activity (DeFi investment, NFT, ...) the transaction is all about. Automatically identified by Merlin. Possible values:

txAction	Description	Example
Liquidity Pool	Dexes: swap/exchange tokens or deposit liquidity to create the market	Possible txType: Deposit, Withdraw, Exchange, Collect, Receive Rewards, Transfer Eg. Uniswap, SushiSwap, Balancer
Lending	Lending & borrowing investments	Possible txType: Deposit, Withdraw, Borrow, Repay, Liquidation, Transfer Eg. Compound, Aave, Morpho
Staking	Stake cryptocurrency assets while still maintaining their liquidity by receiving staked liquidity tokens in return at a 1-to-1 ratio	Possible txType: Deposit, Withdraw, Collect, Receive Rewards, Transfer Eg. Lido, Rocketpool
Locked	Similar to Liquid Staking, but implies the funds to be locked for a certain amount of time, provides higher yield than regular Liquid Staking	Possible txType: Deposit, Withdraw, Collect, Receive Rewards, Transfer Eg. Frax, Thena, Solidlizard, Convex
Farming	Lending or staking cryptocurrency into a pool to receive rewards such as interest and more staked cryptocurrency. Deposit and Reward tokens are not the same	Possible txType: Deposit, Withdraw, Collect, Receive Rewards, Transfer Eg. Convex, Curve, Frax
Leveraged Farming	Borrow tokens to increase farming positions and therefore, capture additional farming yields	Possible txType: Deposit, Withdraw, Collect, Receive Rewards, Transfer Eg. Angle Protocol
Yield	Invest tokens on purely Yield generating pools	Possible txType: Deposit, Withdraw, Transfer Eg. GMX, Yearn, PancakeSwap
Wrap	Wrap/Unwrap token	Possible txType: Wrap, Unwrap
Bridge	Bridge token between chains	Possible txType: Bridge In, Bridge Out
Transfer	Wallet to wallet transfer	Possible txType: Send, Receive
NFT	NFT related transactions	Possible txType: Airdrop, Mint, Exchange, Send, Receive, Burn
Vesting	Funds movements within a Vesting process (a project’s overall token supply is set aside for a period of time and released after certain conditions are met)	Possible txType: Function name
Investment	Investments via TokenSets protocol for example	Possible txType: Function name Eg. TokenSets
Governance	Interaction with Governance pools	Possible txType: Vote (for Solana), Function name (other chains) Eg. 1inch, dYdX
Insurance Seller	Insurance position selling investments	Possible txType: Function name
Insurance Buyer	Insurance position buying investments	Possible txType: Function name
Options Seller	Options selling investments	Possible txType: Function name
Options Buyer	Options buying investments	Possible txType: Function name