Crypto Accounting, Audit & Tax
DeFi Portfolio Analytics & On-Chain Reporting
What's at stake ?
Crypto Accounting Service Providers, as well as Accounting SW/Platform Providers, are proposing the most powerful accounting, audit & tax services to individuals and businesses involved in cryptocurrency activities whether on a enterprise management and/or investment level.
With the rapid growth of the cryptocurrency market, there is a growing need for specialized accounting services that can provide accurate and transparent financial reporting as well as navigate the complex tax and regulatory landscape of digital assets.
One of the biggest challenges faced by crypto accounting firms is the lack of standardized accounting practices and regulations in the industry. This means that accounting firms must stay up-to-date with the latest developments in tax law and accounting standards related to cryptocurrencies to ensure compliance and accuracy in their reporting; all while integrating these reporting within the enterprise accounting tools or ERP solutions (Xero, Quickbooks, ...).
How can MERLIN help?
While the CeFi accounting is relatively simple, intricate DeFi transactions requires in depth understanding of the underlying protocols and their smart contracts. MERLIN’s unique DeFi indexation methodology has got you covered!
Concentrate on your business value proposition and leave the tedious DeFi (on-chain) transaction raw data fetching and assessment to MERLIN! Across Staking, Farming, Lending, Borrowing & Liquidity Pool positions, MERLIN understands all investment strategies, their associated transactions & their relative performance at any point in time, with the utmost accuracy.
DeFi Transaction Reconciliation
Retrieving on-chain raw transaction data is fairly easy, but understanding the kind of DeFi activity behind that raw data requires further analysis and data processing. Which is where MERLIN comes in.
MERLIN's understanding of all DeFi strategies and knowledge of all wallet's interactions (with other wallets or smart contracts - DeFi protocols) has been translated into DeFi transaction classification, to indicate:
the type of interaction (with wallet or smart contract),
the type of movement (deposit, withdraw, send, receive, reward collection, liquidation, repay, …),
the type of DeFi action/investment (lending, liquidity pool, staking, farming, …);
and to render the data exhaustive and transparent: the precise smart contract name and function (method)
Thanks to this MERLIN data, DeFi transactions can be pre-classified: save time and manual tasks to accounting professionals & end-users. And based on the knowledge of their end-clients’ portfolio (wallets), Accounting Providers can finalize the reconciliation: the transactions classifications following the accounting/tax standards and the purpose of the financial reports to generate.
DeFi Positions P&L
Tracking each transaction is a must, determine the associated gains & loss is essential for financial reports and tax statements. Tracking DeFi investments gains & loss requires a deep understanding of DeFi protocols underlying smart contracts and each interaction with them.
Based on actual on-chain data (indexation since inception), MERLIN takes no guess when it comes to Yield, Gas fees, Rewards, Impermanent Loss, Entry Price to produce an accurate P&L for all users' DeFi investments. With precise USD valuation, based on protocol USD exchange rates at the precise operation execution time.
MERLIN is the only DeFi data provider capable of delivering DeFi portfolio performance data details for both currently active (open) investments, but also for historical past (closed) investments. With time-travelling capabilities to snapshot the portfolio performance at a certain moment in time (at a past date) or over a given period of time.
DeFi P&L breakdown
With the most detailed information for a full visibility over the investment: Yield, Transaction Fees, Asset Price fluctuation, and all position's related transactions for position reconciliation.
The investment's granular statistics can be provided periodically for audit needs.
In a crypto volatile market, the investment's Yield might be positive, but that might be not be enough to cover the underlying price volatility. In case of fiat exchange rate important drop, the bottom-line overall P&L might be negative.
DeFi Portfolio Overview
In addition to DeFi transactional data reconciliation and investment performance reporting, a dedicated DeFi tracking can be proposed to end-users: gathering their exposure to DeFi protocols and their overall P&L, for analysis and cross checking.
Overall Portfolio including DeFi
The Users' general portfolio overview can be enriched with their current DeFi exposures.
DeFi Portfolio Dashboard
An overview of the DeFi holdings is good, a DeFi Portfolio Dashboard is great! For users to track the allocation of their funds across the different DeFi investment protocols.
Integration & Pricing
MERLIN is build around an online application (web app), mymerlin.io, available to everyone, proposing a DeFi portfolio performance dashboard as well as insightful DeFi market data analytics. All data powering up the MERLIN web app is available as a API, api.mymerlin.io, for integration with third party proprietary systems.
Full integration
Optimize your solution around DeFi tracking and propose your own DeFi module to your clients by pulling MERLIN API data.
The MERLIN team can assist all throughout the process: beginning with the feature design, the API testing getting started & eventual adaptations for a smooth integration within your system.
MERLIN API pricing is a pay-per-use model: price per endpoint & per call.
Eventually, on a case by case basis, MERLIN web GUI dashboard views can be proposed as white-label widgets.
Light integration
You propose a resource catalog with relevant applications for your clients?
They can be one click away from their DeFi Portfolio Performance tracking with the MERLIN web app.
Why MERLIN?
THE one place to get both P&L performance reporting for the major DeFi protocols and NAV for 1,500+ others, across 25+ chains
Optimize operation & maintenance by reducing the number of third party solution integrations The best DeFi protocol coverage for active investments NAV
Focus on your business value proposition and leave the tedious on-chain data fetching & assessment to MERLIN
Leverage on MERLIN’s DeFi performance data to complete & add value to your business offer
Easy start with a pay-per-use, powerful & straightforward API
Partner for the future with a pure DeFi player: 3+ years in business, providing a wide range of DeFi data services (Portfolio P&L, Market Performance, ...)
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