salomonkarsten
commented
2 years ago I like the proposal a lot. One question the Desktop wallet produces more than 670 addresses and so far no Tool worked well to do a proper cointracking report. Mostcaddresses only were generated temporary. Will the Tool be able to remove these unnecessary utxos entries. Further will rewards/ Comissions summer up daily? How are LM tokens Händler? I understand as burn. I did not know there is a burn in cointracking. Sven Kamchen proposed to leave the original tokens and just include a "trade" to compensate the poolshift
sandstumpen
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Overview
Abstract
When I was preparing my tax return for last year, I quickly hit a few significant limitations that nearly drove me insane. I have tried multiple tools such as the traditional explorer and DFI.tax to collate a correct ledger of my transactions. Unfortunately the numbers never ligned up, and - had I imported it into cointracking.info the way it was - I would have overpaid my taxes by a significant amount.
Then I realised that kind of problem we actually have: it is a data availability problem!
The defichain core node saves the account balances in a so-called "account state". You have the current state of all balances, but you typically do not have a history of how the state actually evolved over time and which transactions actually did what balance changes, changes to the pool ratios, changes to vaults etc. So if you want proper values for your swaps, or proper LP-Pool withdrawal amounts, things get tough. While some projects interpolate / estimate those amounts by recorded "pool exchange prices", these values differ from reality - i.e., from what actually happened on the chain - significantly. You want to know what token balances you had on a specific day? You are also out of luck.
So have modified the core client, to record a "State Trie" (680 GB of data, the vaults really blow it up) similar to the Ethereum Archive Node state trie. It has every single change to any balance, pool, vault recorded historically. Not only does this allow us to take snapshots of the chain back in time, but also gives us EXACT values of what specific transactions have actually done on the chain. Not estimated, not calculated from a price, but exact!
This project comprises a huge public API with all data, historic and current, available to everyone for free. And you get the wonderful explorer that I have built and which is shown below as a bonus for free, to show how easy it is to handle the data. This explorer alone is something I have been looking for, for a long time!
Last but not least, newly emerging projects such as dStocks.io and others, also rely on historic data for charts etc. This API / Database can offer it at no cost.
This is NOT Another Explorer, It's so much more than that
Even though that the entire magic lies in the highly efficient, modified core-client, the state trie it generates and compacts into a datalake, the ability to take historic snapshots, and the benefit to the community through providing a free and public API to all raw data, lets not completely sweep the explorer under the carpet :-)
It is a true beauty, and unlike traditional explorers, it will give you all your transactions in a meaningful and easily legible way. A cointracking export function, which collates your transaction into a ready-to-export cointracking.info report is also embedded, as well as of course all other features you want from an explorer. This for example also includes a transaction analysis, which shows all "state changes" (well, we need to use our data, right?) to account balances, burns, smart contract executions, pool balances, vaults and loans. Something, never seen before on our blockchain.
Let's just have a little sneek peek:
Wrong and Incomplete Data of Current Solutions
As mentioned above, this section is meant to quickly outline the significance of wrong (or incorrectly obtained data) on currently available tools:
Figure 5: Just wrong!
In a tax report, you would for example declare that you received 4 DUSD less, and 70 DFI less than you actually did. How do you then explain, where you got those extra coins from suddenly? In the DACH area, the only solution would be to tax those funds at "bought for 0.00$" and pay tax on the entire amount. Something, we can avoid :-)
Collaboration Opportunities / Community Benefits
The Explorer and taxes are by no means the only use cases for this project. Other projects such as dStocks.io, and many many others, all have the need for correct, readily available, historic data (be it, charts for LP pools, charts how a user's balance changed over time, etc.)
Not only does the explorer directly benefit the community but - and probably more significantly - all the possibilities that open up for other projects will indirectly benefit the community as well.
It will always be free for the public
As mentioned before, as long as I can pay the huge backend in the background, the data will be free, and available for anyone at no cost. And so will the explorer and tax exporter :-)
Timeframes
The development, and data acquisition is 99% finished - i have spend the last months on it for my own tax return, but then realised "why not go the extra mile and make it available for everyone". All we have to do is deploy it and we are ready to go. I would estimate this to take 1 week to 2 weeks max.
Breakdown of how Funds will be Spent
This makes the infrastructure costs amount to USD 5256.00 per month and USD 63072.00 for a period of 12 months. This already includes a tiny vServer that hosts the API gateway itself.