What Does TaxBit's DeFi Tool Do?

With the emergence of DeFi as the new way to exchange crypto without the centralized exchange experience (DeFi = Decentralized Finance), TaxBit has recognized the need to support your DeFi activity. Each day we're actively working on expanding DeFi support to popular blockchains.

What does TaxBit's tool do?

This initial version of our DeFi support will allow you to easily sync in any Transfers, Trades, and approvals you’ve made on a DeFi platform involving ERC-20 tokens on the ETH network or BEP-20 tokens on the BSC network.

• Made a swap (Trade) of ETH to BAT on Uniswap? We can capture that.
• Transferred BNB from one BSC wallet to another? We've got you covered.
• Approved a new asset for swapping on a DeFi Protocol? We can handle that. (These will come in as Expense transactions)

We will be adding onto the upcoming blockchains for DeFi support. On Ethereum we are currently supporting 1 DeFi protocol (applications which are built to use the ETH chain) for Uniswap (“UNI”). 

Supported DeFi protocols:

• Uniswap
  • • • Swaps - a more common way users use Uniswap. Users will trade their tokens for other tokens. Example: User selects ERC-20 token that they have and selects a token they'd like to trade it for. 
      • Provide liquidity- users earn income for depositing tokens into liquidity pools which enable the swaps. 
      • Types of DeFi activity recorded- trade & earn transactions 

How does it work?

Here's the magic behind our tool: 

Our tool takes your public wallet address > Searches Etherscan or BSCscan for any Transfers, Trades, or approvals that have been made from that address > Picks out the data that we need to create a transaction in your account > From there, your Transfer, Trade, and approval transactions are automatically created and made visible within your Transactions page.

How do I connect an ETH or BSC wallet to sync DeFi transactions?

We've made this part super simple! If you've connected any other Blockchain wallets to your TaxBit account in the past, the process will effectively be the same. You can follow along with our guide about connecting wallets to TaxBit, found HERE.

We're actively working on expanding DeFi support to other popular blockchains, and we’ll update our article regularly to let you know how we’re expanding our support. You can find the most recent version of that article HERE. 

If there are any blockchains you use that are not yet supported on TaxBit, you can upload your transactions using a CSV file export. 

Still have questions? Send us an email at support@taxbit.com and we'd be happy to help!

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Keywords:

DeFi

DeFi Tool

Decentralized Finance