If your year included LP positions, leverage, looping, MEV, or just enough yield-farming to give your tax software a panic attack — this is the desk built for you.
Adding liquidity is a token swap (sell underlying, buy LP token) under current IRS guidance. Cost basis tracked in the LP token.
classification · cost-basis eventRemoving liquidity is a sale of the LP token at the time-of-removal value. Capital gain/loss vs. cost basis recognized.
classification · capital eventToken rewards from yield farms are ordinary income at fair-market-value when received. Cost basis on the new tokens locks at FMV.
classification · ordinary incomeValidator and staking rewards accrue as ordinary income at FMV at receipt. Liquid staking (Lido, RPL) follows the same rule on the wrapped reward token.
classification · ordinary incomePosting collateral to borrow stables is generally not a taxable event — provided the collateral isn't liquidated. We track basis carefully through the position.
classification · cost-basis eventForced sale of collateral is a capital event at the liquidation price. Often produces a recoverable loss most filers miss entirely.
classification · capital eventBridging same-asset (ETH → wETH on Arbitrum) is generally not taxable. Bridging into a wrapped/different token may trigger a swap event.
classification · cost-basis carryToken airdrops are ordinary income at FMV on the day of dominion-and-control receipt. Even if held in a hot wallet you didn't claim until later.
classification · ordinary incomeMEV bot profits are generally Schedule C trade-or-business income. We separate the position from passive trading and adjust basis accordingly.
classification · sch C incomeEvery classification is documented with the on-chain transaction hash, the block, the timestamp, and the FMV oracle pricing source we used. Audit defense begins on day one of reconciliation, not day one of an audit.
The work-paper artifacts on the right are exactly what we file with the return and store for seven years. If the IRS opens a 2050C inquiry, this is the file that gets sent in your defense — not a shoebox of CSVs.
See audit defense →Read-only addresses, 24-hour reconciliation, full liability estimate. Most DeFi power-users discover $20K–80K in unclaimed loss harvesting.
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