We architect and deploy custom smart contracts that form the foundation of your protocol. Our development process is built on security-first principles, utilizing OpenZeppelin libraries, Solhint for static analysis, and comprehensive unit/integration testing with Hardhat or Foundry.
Liquidity Pool Yield Tax Reporting Solution
Smart Contract Development
Secure, audited smart contracts built for production by Web3-native engineers.
From a 2-week MVP to a full-scale DeFi protocol, we deliver production-ready code that is secure, gas-optimized, and upgradeable.
- Custom Logic: Build unique tokenomics, governance systems, staking mechanisms, and automated market makers (AMMs).
- Security Audits: All contracts undergo internal peer review and are prepared for third-party audits from firms like
CertiKorTrail of Bits. - Deployment & Verification: Full deployment pipeline management on
EVMchains (Ethereum, Polygon, Arbitrum) with on-chain source code verification.
Core Capabilities of Our Tax Reporting Engine
Our engine transforms complex DeFi activity into compliant tax reports, saving your team hundreds of hours and eliminating reconciliation errors.
Automated On-Chain Data Ingestion
Real-time ingestion of LP transactions, yield events, and token swaps from 50+ EVM and non-EVM chains. We handle raw blockchain data so you don't have to.
Precise Cost Basis & Gain/Loss Calculation
Automated FIFO, LIFO, and HIFO accounting for LP token deposits, withdrawals, and impermanent loss. Calculates cost basis across thousands of transactions with 100% accuracy.
Regulatory Compliance Mapping
Generates IRS Form 8949, Schedule D, and international equivalents (e.g., HMRC, ATO). Rules engine adapts to jurisdictional changes, ensuring ongoing compliance.
Enterprise-Grade Security & Audit Trail
SOC 2 Type II compliant infrastructure with end-to-end encryption. Every calculation is versioned and traceable, providing a complete audit trail for financial controllers.
Customizable Reporting & White-Labeling
Fully branded PDF/CSV reports with your logo. API-first design allows seamless integration into your existing user dashboard or accounting software.
Dedicated Technical Support & SLAs
Guaranteed 99.9% uptime with 24/7 monitoring. Your dedicated solutions engineer ensures smooth integration and provides expert guidance on complex tax scenarios.
Business Outcomes for Your Platform
Our Liquidity Pool Yield Tax Reporting Solution delivers concrete, measurable value by automating complex compliance workflows and unlocking actionable financial data.
Automated Regulatory Compliance
Eliminate manual reporting errors and ensure 100% accuracy for IRS Form 8949, Schedule D, and international tax forms. Our system automatically tracks cost basis, wash sales, and yield classification across all your LPs.
Real-Time Portfolio & Tax Liability Visibility
Gain instant insight into accrued but unrealized gains, estimated tax liabilities, and yield performance across all your DeFi positions. Make informed capital allocation decisions with up-to-the-block data.
Secure, Audit-Ready Data Architecture
Every transaction is immutably logged with source-chain proof. Generate comprehensive, auditor-friendly reports with full traceability from on-chain event to final tax form entry.
Reduced Operational Overhead & Cost
Replace expensive manual accounting processes and fragmented spreadsheet tracking with a single, automated system. Reallocate finance team resources from data entry to strategic analysis.
Scalable Infrastructure for Growth
Our solution scales seamlessly as you add new liquidity pools, tokens, or expand to additional blockchain networks (EVM & non-EVM). Infrastructure grows with your protocol, not against it.
Enhanced Investor & Stakeholder Confidence
Provide transparent, professional-grade financial reporting to investors, regulators, and DAO members. Demonstrate mature operational controls and commitment to compliance.
Build vs. Buy: Tax Reporting for DeFi
A clear comparison of the development, cost, and operational burden of building a custom DeFi tax reporting engine versus implementing Chainscore's enterprise-grade solution.
| Factor | Build In-House | Chainscore Solution |
|---|---|---|
Time to Market | 6-12 months | 4-8 weeks |
Initial Development Cost | $150K - $400K+ | $25K - $75K |
Ongoing Engineering & Maintenance | 2-3 FTE Engineers | Fully Managed Service |
Smart Contract & Data Pipeline Security | High Risk (Custom, Unaudited) | Low Risk (Audited, Battle-Tested) |
Coverage: DEXs, Lending, Yield | Limited to Planned Integrations | Pre-built for 50+ Major Protocols |
Regulatory Compliance (FIFO, LIFO, ACB) | Manual Implementation Required | Pre-configured, Audit-Ready |
Real-Time Portfolio & P&L Dashboard | Custom Build Required | Included with API Access |
Total Cost of Ownership (Year 1) | $300K - $600K+ | $50K - $150K |
Scalability for User Growth | Requires Re-architecting | Handles 1M+ Users Out-of-the-Box |
Our Implementation Methodology
We deliver a production-ready tax reporting solution through a structured, transparent process designed for FinTech and Web3 enterprises. Our methodology ensures security, compliance, and seamless integration with your existing systems.
Discovery & Protocol Analysis
We conduct a deep-dive analysis of your liquidity pools, yield strategies, and on-chain data sources (Uniswap V3, Curve, Aave). This phase defines the exact transaction types, fee structures, and tax jurisdictions to be supported.
Custom Data Pipeline Architecture
We design and deploy a resilient data ingestion pipeline using The Graph, Covalent, or custom indexers. This ensures real-time capture of swaps, adds/removes, and reward accruals with 99.9% data integrity for accurate cost-basis calculation.
Tax Logic & Calculation Engine
Our engineers implement jurisdiction-specific tax logic (FIFO, LIFO, HIFO) and automated calculations for capital gains, income, and rewards. The engine handles impermanent loss adjustments and generates audit-ready reports.
Security Audit & Penetration Testing
Every component undergoes rigorous security review. Smart contracts are audited against reentrancy and oracle manipulation; data pipelines are tested for integrity. We provide a certification report for your compliance team.
Staging Deployment & Validation
We deploy the full solution in a staging environment mirroring your production setup. This includes end-to-end testing with historical transaction replay, reconciliation with existing ledgers, and user acceptance testing (UAT).
Production Launch & Ongoing Support
We manage the production deployment, ensuring zero downtime during cutover. Post-launch, we provide 24/7 monitoring, quarterly tax law updates, and dedicated technical support under a defined SLA.
Frequently Asked Questions
Get clear answers on how our automated tax reporting solution integrates with your DeFi protocol and simplifies compliance for your users.
We provide a secure, read-only API that connects directly to your protocol's smart contracts and subgraphs. Our system ingests on-chain transaction data for all liquidity pools, calculates yield, fees, and impermanent loss events, and formats them into standardized tax reports (Form 8949, Schedule D). No modifications to your core contracts are required. Integration typically takes 1-2 weeks.
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today.
Our experts will offer a free quote and a 30min call to discuss your project.