[Seeking Feedback] IoTex CSVs in stake.tax

Grant Proposals Infra & Dev Tools
#1

Proposal details

Project Name

IoTex CSVs in stake.tax

Project Type

Infra & Dev Tools

Proposal Description

stake.tax is a tool aimed at filling the gap between DeFi and tax reporting software. Most tax software only support major blockchains and in many cases are unable to categorize transactions correctly. This leaves users with the choice of either leaving their DeFi wallets in the dark (risking future penalties from tax agencies) or spending hours collecting and entering all of their transactions manually. Adding the uncertainty of how and what to report, this constitutes a major hurdle in the adoption of DeFi.

In stake.tax users are able to enter their address and download a CSV file ready to import to their crypto tax software of choice. The downloaded CSV file contains the list of taxable transactions tagged accordingly, e.g. swap, reward, cost, liquidity in/out, etc.

stake.tax is open source, highly integrated, reliable, and free.

The proposal is to develop and add IoTeX to stake.tax, supporting its development through to April 2023 (next tax season).

Scope

Adding a new blockchain to stake.tax involves research, development of blockchain-specific processing, and testing/integrating into the website.

I have already researched and identified how to retrieve IoTeX blockchain data, as well as implemented initial support for IoTeX (transfer and stake/reward actions). Next steps are further testing of the initial implementation to ensure its quality and adding support for XRC20 actions and DeFi transactions such as swapping and adding/removing from liquidity pools.

I’m confident I can deliver a full integration of IoTeX CSVs live on stake.tax within five weeks from a start date, and support any evolution of the IoTeX DeFi ecosystem through to the next tax season.

Milestones

  • Milestone 1:
    • Duration (weeks): 1 week
    • Deliverables: IoTeX CSVs live on stake.tax (transfer and reward transactions)
    • Funds request (USD): 5,000 USD
  • Milestone 2:
    • Duration (weeks): 4 weeks
    • Deliverables: IoTeX CSVs live on stake.tax (DeFi transactions)
    • Funds request (USD): 10,000 USD

Total funds requested

[ 15,000 USD ]

Links

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https://community.iotex.io/t/grant-issuance-rules/3839

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Milestone Reports

1 Like
#2

@JumperAvocado - thanks for the application. Can you elaborate where is this CSV coming from?

#3

Hi @raullen, thanks for the consideration!

The data in the CSV comes strictly from blockchain data. In the current implementation we are using iotexscan’s API to retrieve transfer and stake actions. However for DeFi transactions I’ll most likely be using Covalent’s API.

Once we have the data we process it and export taxable transactions into a CSV file formatted appropriately for the tax software the user chooses.

The main complexity lies in processing and recognizing the different DeFi protocols. As an example, I’ve recently implemented this for the Algorand blockchain, and due to differences in contracts every protocol has its unique way of orchestrating transactions.

Please let me know if you need further details.