DeFi Accounting
Proper accounting treatment for yield farming, lending/borrowing, LP positions, staking rewards, governance tokens, and complex multi-protocol strategies.
Key Features
Yield Farming
Automated tracking of yield farming positions across protocols — reward accruals, harvest events, and compounding strategies with proper revenue recognition.
Lending & Borrowing
Interest income/expense recognition for Aave, Compound, and other lending protocols with real-time position monitoring.
LP Position Tracking
Full lifecycle tracking of LP positions — entry, fees earned, impermanent loss, rebalancing, and exit with cost-basis maintenance.
Staking Rewards
Automated tracking of staking rewards across PoS networks and liquid staking protocols with proper income recognition timing.
Governance Tokens
Accounting for governance token distributions, vote-escrowed positions, delegation rewards, and bribes.
Multi-Protocol Unwinding
Complex strategy unwinding across multiple protocols with full cost-basis tracking at every step.
How Our AI Handles This
DeFi introduces complex accounting challenges — yield farming, lending/borrowing, LP positions, staking rewards, governance tokens, and multi-protocol strategies. Our AI understands the mechanics of 50+ protocols and applies the correct accounting treatment for every position and event.
Protocol Detection
AI identifies which DeFi protocols your wallets interact with and understands the specific mechanics of each.
Position Analysis
Each DeFi position is decomposed into its underlying components — principal, rewards, fees, and unrealized gains/losses.
Accounting Treatment
The correct accounting treatment is applied based on the position type, jurisdiction, and your entity's accounting policies.
Ongoing Monitoring
Positions are monitored continuously for material events — liquidations, reward claims, impermanent loss thresholds, and rebalancing.
Applicable Standards
US GAAP
ASC 606 for revenue recognition on staking/yield, ASU 2023-08 for fair value, ASC 815 for derivative-like instruments in DeFi.
IFRS
IFRS 9 for financial instruments, IFRS 15 for revenue from contracts, IAS 32 for classification of LP tokens as financial instruments.
Ready to get started?
See how Heshi can transform your defi accounting workflow with AI-powered automation and expert human oversight.