defi specialist desk

Twelve protocols
per file. Fully reconciled.

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.

Begin DeFi assessmentDeFi pricing
defi event taxonomy · how we classify

Nine event types. Each one matters.

lp_entry

LP position open

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 event
lp_exit

LP position close

Removing liquidity is a sale of the LP token at the time-of-removal value. Capital gain/loss vs. cost basis recognized.

classification · capital event
yield_claim

Yield rewards claimed

Token rewards from yield farms are ordinary income at fair-market-value when received. Cost basis on the new tokens locks at FMV.

classification · ordinary income
staking_reward

Staking rewards

Validator 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 income
borrow_open

Borrow / collateralize

Posting 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 event
liquidation

Position liquidated

Forced sale of collateral is a capital event at the liquidation price. Often produces a recoverable loss most filers miss entirely.

classification · capital event
bridge

Cross-chain bridge

Bridging same-asset (ETH → wETH on Arbitrum) is generally not taxable. Bridging into a wrapped/different token may trigger a swap event.

classification · cost-basis carry
airdrop

Airdrop received

Token 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 income
mev_capture

MEV / arb income

MEV bot profits are generally Schedule C trade-or-business income. We separate the position from passive trading and adjust basis accordingly.

classification · sch C income
work-paper sample

What our reconciliation actually looks like.

Every 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 →
workpaper.json · file 14 of 4,820
// reconciled record · 2025-09-14 · 14:38 UTC {   "tx_hash": "0x4f81a92ce4b62f8e1c4dc5d3a9c7b2…",   "chain": "ethereum",   "block": 21884012,   "timestamp": "2025-09-14T14:38:21Z",   "protocol": "uniswap_v3",   "event_type": "lp_exit",   "position": {     "pair": "ETH/USDC",     "opened_block": 19420118,     "days_held": 421   },   "cost_basis_usd": 42180.00,   "proceeds_usd": 58420.50,   "realized_gain_usd": 16240.50,   "holding_period": "long_term",   "price_oracle": "chainlink_eth_usd",   "form": "8949 · box D",   "verified_by": "M. Okafor, CPA" }
supported defi protocols

Thirty-eight protocols, mapped event-by-event.

U
Uniswap
v2 · v3 · v4
A
Aave
v2 · v3
C
Compound
v2 · v3
L
Lido
stETH · wstETH
M
MakerDAO
DAI · sDAI
G
GMX
v1 · v2
P
Pendle
PT · YT · LP
C
Curve
stable · crypto
B
Balancer
v2 · gauges
R
Rocket Pool
rETH · validator
F
Frax
FRAX · sfrxETH
E
Eigenlayer
restaking · ops
J
Jupiter
solana swaps
M
Marinade
mSOL
D
dYdX
v3 · v4
S
Synthetix
sUSD · perps
M
Morpho
blue · vaults
+
21 more
request added
deliverable · annual reconciliation report

What you receive at the end.

One-page liability summary

// total realized gain · 2025
+$418,240
// federal tax liability · est.
$84,640
// state · co
$18,420

Activity breakdown

  • Spot trades · CEX+$48,200
  • LP exits · long-term+$214,840
  • LP exits · short-term+$32,180
  • Yield rewards (income)+$84,420
  • Staking rewards (income)+$48,640
  • Liquidation losses (offset)−$10,040
  • Bridge events (basis)no tax
free defi assessment · no commitment

Connect your wallets — see what you owe.

Read-only addresses, 24-hour reconciliation, full liability estimate. Most DeFi power-users discover $20K–80K in unclaimed loss harvesting.

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