Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Services

Liquidity Pool Yield Tax Reporting Solution

Automated, compliant tax calculation for DeFi participation. We handle LP token acquisition, disposal, impermanent loss, and yield farming rewards from tokenized asset pools.
Chainscore © 2026
overview
CORE SERVICE

Smart Contract Development

Secure, audited smart contracts built for production by Web3-native engineers.

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.

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 CertiK or Trail of Bits.
  • Deployment & Verification: Full deployment pipeline management on EVM chains (Ethereum, Polygon, Arbitrum) with on-chain source code verification.
key-features-cards
AUTOMATED, ACCURATE, AUDIT-READY

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.

01

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.

50+
Blockchains
< 5 min
Sync Latency
02

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.

100%
Calculation Accuracy
FIFO/LIFO/HIFO
Accounting Methods
03

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.

IRS, HMRC, ATO
Jurisdictions
Form 8949
Key Output
04

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.

SOC 2
Compliance
End-to-End
Encryption
05

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.

PDF/CSV/API
Output Formats
White-Label
Ready
06

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.

99.9%
Uptime SLA
24/7
Support
benefits
TANGIBLE RESULTS

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.

01

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.

100%
Reporting Accuracy
0
Manual Errors
02

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.

Real-Time
Liability Tracking
All Chains
Portfolio View
03

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.

Immutable
Audit Trail
End-to-End
Data Integrity
04

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.

90%
Time Saved
Significant
Cost Reduction
05

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.

Unlimited
Pools Supported
Multi-Chain
Architecture
06

Enhanced Investor & Stakeholder Confidence

Provide transparent, professional-grade financial reporting to investors, regulators, and DAO members. Demonstrate mature operational controls and commitment to compliance.

Professional
Reporting
Transparent
Governance
The Infrastructure Decision

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.

FactorBuild In-HouseChainscore 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

how-we-deliver
PROVEN PROCESS

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.

01

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.

50+
Protocols Supported
1-3 days
Scoping Sprint
02

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.

99.9%
Data Integrity
< 5 min
Sync Latency
03

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.

30+
Tax Jurisdictions
100%
IRS/Form 8949 Compliance
04

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.

Zero
Critical Bugs at Launch
Certified
Security Practices
05

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).

100%
Historical Data Match
2-5 days
Validation Cycle
06

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.

24/7
Monitoring & Support
4-hr
Critical Response SLA
Liquidity Pool Tax Reporting

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.

ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team
Liquidity Pool Tax Reporting | Chainscore Labs | ChainScore Guides