DeFi Handling

What DeFi features does CryptaCount support?

CryptaCount’s DeFi module covers:

DeFi Pipeline — process and classify DeFi events with configurable rules
DeFi Positions — track LP positions, lending, staking, and rebasing tokens
Bridges — detect and resolve cross-chain bridge transactions
Gas Fees — detailed gas fee reporting per workspace
Derivatives — margin positions, futures, options, and funding rate tracking
Restaking — restaking positions, validator rewards, slashing, and pod management
Governance — token locking, delegation, rewards, and bribes
Insurance — DeFi insurance policy tracking, claims, and coverage tokens
MEV Analysis — flash loans, arbitrage profits, sandwich attacks, and victim loss tracking
Privacy — shielded/unshielded transactions for privacy protocols

How does CryptaCount classify DeFi transactions?

CryptaCount supports 40+ DeFi-specific transaction types across these categories:

Liquidity provisioning — adding and removing liquidity
Staking — staking, unstaking, and claiming rewards
Lending — deposits, withdrawals, borrowing, repayment, and liquidation
Bridging — bridge-out and bridge-in events
Wrapping — wrapping and unwrapping tokens
Margin trading — opening/closing positions, collateral management, interest, and liquidation
Futures — opening/closing positions, funding rates, and settlement
Options — buying, selling, exercising, expiring, and assignment
Restaking — deposits, withdrawals, validator rewards, and slashing
Governance — locking, unlocking, delegation, rewards, and bribes
Insurance — policy purchases, claims, premiums, and expiry
MEV — flash loans, arbitrage, sandwich attacks, and victim losses

The classification engine recognizes major DeFi protocols automatically. For unrecognized protocols, built-in heuristics analyze the transaction structure to determine the correct type. You can also set up accounting rules under Settings → Rules to handle specific protocols automatically.

How does CryptaCount handle DEX swaps?

DEX swaps (Uniswap, SushiSwap, Curve, etc.) are classified as swaps. The platform records both sides: a disposal of the source token (triggering realized gain/loss) and an acquisition of the destination token at fair market value. Gas fees are recorded as a separate fee entry.

Are liquidity pool deposits a taxable event?

This depends on your jurisdiction. CryptaCount records the deposit as a liquidity add — assets leave your wallet and LP tokens are received. Whether this constitutes a disposal (taxable) or a non-taxable transfer depends on local tax authority guidance.

CryptaCount provides the data for both interpretations. If the deposit should not be treated as a disposal, reclassify the transaction accordingly.

How is impermanent loss handled?

Impermanent loss is captured implicitly. When you remove liquidity, the assets received may differ in quantity from what you deposited. The difference between the cost of the LP tokens and the value of received assets includes any impermanent loss as part of the realized gain/loss calculation.

The DeFi Positions view tracks LP positions over time, making it easier to see how the position’s value has changed.

How are staking rewards classified?

Staking rewards are classified as reward claims and recognized as income at fair market value at the time of receipt. The received tokens enter your cost basis pool at that value.

CryptaCount also tracks:

Validator rewards for node operators
Yield claims for yield farming
Restaking rewards for restaking participation
Governance rewards for governance participation

If rewards auto-compound, the platform attempts to detect the restaking event. If not automatically captured, add a manual entry.

How do wrapped tokens work?

Wrapping (ETH → WETH, BTC → WBTC) is treated as a non-taxable conversion. Cost basis carries over — no gain or loss is realized. Unwrapping reverses the process.

This treatment applies to 1:1 wrapping only. Yield-bearing wrappers (like stETH) or rebasing tokens are tracked separately via the DeFi Positions rebasing token feature.

How are cross-chain bridge transactions handled?

Bridge transactions generate two events: a bridge-out on the source chain and a bridge-in on the destination chain. Cost basis carries over — bridging is treated as moving the same asset, not a disposal.

Both source and destination chain wallets must be connected for the events to match. The Bridges page under DeFi → Bridges shows pending and stale bridge transfers, with a resolution tool for unmatched events.

How do derivatives work?

The derivatives module covers three product types:

Margin trading:

Open/close positions, collateral management, interest accrual
Tracks margin interest as an expense
Liquidation events recorded with full P&L

Futures:

Open/close positions, funding rates, mark-to-market, settlement
Funding rate payments tracked as income or expense
Settlement generates realized P&L

Options:

Buy/sell, exercise, expiry, assignment
Premium tracking with appropriate income/expense classification
Exercise triggers cost basis adjustment on the underlying

What about restaking?

CryptaCount has dedicated restaking support:

Restaking positions — track deposits, withdrawals, and the withdrawal queue
Pod management — creation and verification events
Validator rewards — rewards from validated services
Slashing — slashing penalty events

Access restaking features under DeFi → Restaking.

What if a DeFi transaction is misclassified?

Override any classification from the transaction detail view or use bulk reclassification. Common corrections:

A transfer in that should be a reward claim (unrecognized staking/farming protocols)
A transfer out that should be a staking deposit (unrecognized staking protocols)
Two separate transfer events that should be a single swap (unrecognized DEX routers)

For recurring patterns, create an accounting rule under Settings → Rules to auto-classify matching events. Rules support testing before activation.