We highly recommend reading the whole article for both existing and new users. The article explains all the most important updates and changes related to DeFi and NFTs that you should understand to ensure your crypto portfolio and tax reports are as accurate as possible.
Since Coinpanda was founded in January 2019, our main focus has been to ensure maximum accuracy of the integrations with centralized exchanges and provide our users with complete tax reports. But we are not stopping there. We have set an ambitious goal for 2024: to be the most complete and accurate portfolio tracking and tax platform for DeFi, NFTs, and decentralized applications.
Today, we have taken a big step towards this goal by releasing our new and updated DeFi integration for EVM blockchains. The new integration includes more than 45 updates, and we fixed and added support for more than 250 user requests received during the last year.
Read on to learn more about all the new updates and how the new integration may impact your portfolio tracking and tax reporting.
Track your portfolio and taxes on the go
New EVM blockchains
One of the most requested features has been support for new blockchains such as PulseChain, Base, and Shibarium. With the new integration, we added support for 79 EVM blockchains. We will also continue to add support for any new EVM chains in the future so that you can always import your transactions from API sync.
The complete list of supported EVM blockchains is shown below.
Perhaps not the most exciting feature, but still a very important update: we have significantly increased the import accuracy of all EVM chains. As a result, your balances will show significantly fewer discrepancies than before, resulting in less manual work and more accurate calculations.
We could write a whole article about all the small and big improvements, but on a high level, it can be summarized as follows:
- 100% accurate import of all native currency and ERC-20 transactions
(only limited by data indexed by block explorers)
- All failed transactions identified and highlighted on the Transactions page
- Accurate fee handling for L2s such as Optimism and other OP stack blockchains such as Base
- Proper handling of self-transfers and zero-value transactions
- Improved identification of tokens and NFTs
- Support for 450 liquidity protocols and DEXes (more on this later!)
… and much more
It’s also worth mentioning that we upgraded our database to support 14 decimal digits. This is important, especially for providing liquidity, since many LP tokens will have a very low supply resulting in you receiving less than 0.00000000001 of a token.
This also improves the accuracy of tracking other transactions, such as staking rewards:
DeFi smart engine
Have you borrowed crypto on Aave, earned interest on Compound from lending, or staked your assets in a DeFi protocol? In this case, we get you covered.
An important part of reducing the complexity of calculating taxes on DeFi transactions is correctly identifying and labeling transactions related to lending, borrowing, staking, claiming airdrops, and more. We have introduced our new DeFi smart engine to solve this, which will automatically identify and tag your transactions.
This results in less manual work to ensure accurate tax reports and makes reviewing your transactions much easier since you can use the filters to find the exact transaction you are looking for. For example, by selecting Loan in the Label filter, you will automatically see all transactions related to receiving or repaying a loan from DeFi protocols such as Aave or Compound.
The DeFi smart engine is constantly being improved to add support for new contract executions and protocols. If you see any transactions you believe should be identified differently, please get in touch with us in the live chat or create a post in our forums.
AMMs and liquidity protocols
Now, this is a big one. Where do we even start?
Adding or removing liquidity to a pool on AMM protocols such as Uniswap, Pancakeswap, or Curve Finance creates some challenges related to tax calculations for several reasons:
- Complex transactions involving multi-token transfers
- Challenges with pricing LP tokens
- Identification of add/remove liquidity operations across 450+ protocols
- Accurate cost basis tracking of LP tokens
After several months of hard work, we are very happy to announce that the new DeFi integration supports almost every AMM and liquidity protocol on the 79 EVM blockchains currently supported. 454 protocols are supported today, and new protocols are added almost daily.
Although most add or remove liquidity transactions involve two tokens, single-sided liquidity and pools with more than two tokens (e.g., Curve) are also fully supported. Each liquidity transaction is visualized as a single transaction, making reviewing your imported transactions much easier than before when each transfer was shown separately.
Below is an example of a transaction for adding liquidity to the BLUR-ETH pool on Uniswap v3. Also, notice how the LP token’s value (acquisition cost) is tracked automatically.
Wrapping and unwrapping
Wrapping and unwrapping of L1 native currencies must be treated differently than other transactions since they are not indexed and provided directly by block explorers such as Etherscan.
While such transactions have been supported since December 2021, we have improved this in the new DeFi integration, and wrapping transactions are now fully supported across all 79 EVM blockchains.
Pro tip: You can filter for all wrapping and unwrapping transactions by going to Advanced → Description in the filter menu and searching for “wrap” or “unwrap”
Support for bridged token transactions was introduced in February of 2023 but has now seen further improvements with the new DeFi integration. More than 120 bridges are currently supported today.
To see your bridged token transactions, go to the Transactions page and select Bridge in the Label filter. You can hover the mouse over the comment icon to view more details about the protocol used to bridge your tokens.
Lido liquid staking
In the new DeFi update, we added support for Lido liquid staking as well. This makes tracking your staking rewards for income purposes and accurate cost basis calculations of your Lido staked assets automatic and accurate!
All Lido staking rewards, paid out in stETH, will be imported and tagged automatically as “Staking” and included in the Income section of your tax report.
ERC-721 and ERC-1155
The NFT support has also received a welcoming big upgrade. NFTs are now supported by 25 EVM chains, where most chains also support the ERC-1155 NFT standard.
The full list of EVM blockchains supporting NFTs is shown in the table below.
|BNB Smart Chain
|Huobi ECO Chain
Bulk NFT transactions
If you have made any bulk NFT transactions, such as NFT minting or bulk purchases, you might have previously seen these as separate Send-Receive transactions rather than a single transaction. This caused some challenges with valuing and tracking the cost basis of the NFTs, and oftentimes, the only solution would be to assign a value to the NFTs sold or bought manually.
We have now introduced grouped (or bulk) NFT transactions to solve this. All transactions involving more than a single NFT will be grouped together, ensuring each NFT gets assigned an accurate price and valuation. No more need to update the NFT values manually!
Because CryptoPunks are ERC-20 tokens rather than ERC-721, which is the most commonly used token standard for NFTs on Ethereum, CryptoPunks were not previously fully supported. This has now changed in the new integration, and we are proud to say that Coinpanda is the first tax platform that fully supports the original CryptoPunk NFTs!
All your purchases, sales, and transfers of CryptoPunks will be imported automatically, and each unique NFT will be identified by its ID. This means that the cost basis will also be tracked correctly if you have purchased or held more than one CryptoPunk in your wallet.
Viewing and keeping track of your JPEGs and NFT collections can be daunting. Introducing the Coinpanda NFT Center – your one-stop platform for viewing your NFTs across all blockchains!
The NFT center lets you:
- View all NFTs in your wallets across 25+ EVM chains and 15+ other blockchains
- Filter NFTs based on collection or blockchain
- View the acquisition cost and date of all NFTs owned
- Share your NFT collection with friends or followers
- View the NFTs owned by any address (coming soon!)
We are especially excited about this update and very interested in hearing feedback about how we can improve the NFT experience or new features you would like to see added.
Another major upgrade is the new wallet holdings section. We are now showing fiat and tokens separately from NFTs and LP tokens to make it easier to get a better overview of your current holdings.
The NFT holdings section previews the NFTs, while more details can be found in the NFT center.
For our DeFi enthusiasts, the LP token section shows a detailed overview of the protocol, contract address, current holdings, and a link to the token page associated with each LP token in your wallet.
You have probably received a spam token (or 50) if you have a MetaMask wallet or any other EVM-compatible wallet.
In almost all cases, transactions with spam tokens can be ignored completely, and your total portfolio balance will also look cleaner if they are excluded. While we cannot stop spam tokens from being sent to your wallet, we can automatically identify and ignore such transactions so that you don’t need to do this manually.
And that’s exactly what we have done! We have identified more than 2,500 spam tokens across the 79 EVM chains supported so far, and new tokens are being added to the list continuously. You can send us a message if you have received a spam token that is not identified automatically during import.
Spam tokens are handled in two ways:
- They will not be shown in your wallet balance by default
- The transactions will be marked as Spam during import
To view all transactions automatically marked as spam, go to the Advanced filter and enable the last filter option at the bottom of the dropdown.
The transaction filters have seen a big upgrade lately, introducing both multi-select and advanced currency filters.
As the name implies, multi-select lets you filter for multiple currencies at once, as seen in the image below. Multi-select will also be added to more filters very soon.
The new currency filter categorizes currencies into Fiat/Tokens, NFTs, and LPs. This is done to make finding the exact currency or token you want to select much easier. You can also search for a token or NFT by contract address, which might be especially helpful for LP tokens, which oftentimes share the same ticker symbol and name.
We’ve also got you covered for all the digital artists out there!
Creator royalties received from sales of your NFTs will be automatically tagged as Reward, simplifying your tax reporting of such income.
friend.tech and SocialFi
The SocialFi platform friend.tech took the crypto world by storm in September by offering anyone with a following on Twitter/X to monetize their social media presence.
Accounting for friend.tech transactions in your tax calculations require a few special considerations since you are not buying a real currency or asset. Instead, you hold “keys” representing shares of the Twitter profile you have invested in.
After importing transactions from your Base address, you can go to the Transactions page and select Social in the Label filter to view all your friend.tech transactions. We automatically keep track of all your shares so that the capital gains will be calculated accurately when you sell any shares later.
The following social networks (SocialFi) are currently supported:
While the new DeFi and NFT integration with EVM blockchains was a major milestone and a big leap toward our goal of creating the world’s most complete and accurate portfolio tracker and tax platform, the development doesn’t stop here.
We have a lot of new features in the pipeline that will be rolled out over the next few months. This includes:
- DeFi integration with Cardano, Solana, Terra, and other L1s
- DeFi Center for tracking all your DeFi positions across 200+ blockchains
- Improved price oracle supporting 1M+ tokens
- NFT pricing and valuations
- Advanced portfolio tracking features
We would also love to hear feedback if there is anything you think we can improve or new features that you would find useful. As always, the best way to get in touch is via live chat, our forums, or Discord!