Announcing support for Uniswap v3, the world's largest decentralized exchange

Continuing to simplify complex profit and loss calculations for DeFi (Decentralized Finance) and support for tax filing

pafin Inc. (Co-chairman: Amin Azmoudeh and Gaku Saito), which operates the leading cryptocurrency profit and loss calculation service cryptact, has started support for Uniswap v3, the largest decentralized exchange in the world, and PancakeSwap v3 in cryptact's automatic DeFi classification functionality. 

Background

DEXs (Decentralized Exchanges) garnered attention along with the growth of the cryptocurrency industry, starting with the thriving NFT market in 2021. DEXs offer various rewards like yield farming, but due to their decentralized nature, retrieving transaction history which translates to taxable transactions is complex and onerous. In addition, unclear methods for tax calculation have created many challenges, making profit and loss calculations extremely difficult.

Uniswap, launched in 2018 as the world's first DEX, has undergone three version upgrades and now boasts the largest share globally. The upgrade to v3 introduced flexible fee settings and "concentrated liquidity(*1)"  making the structure more complex and further complicating transaction identification and analysis.

Cryptact has added support for Uniswap v3 to its existing Uniswap v2 services, achieving efficiency in identifying and analyzing complex transactions. We have also added support for PancakeSwap v3, which, as of January 2024, is the DEX with the largest amount of assets under management on the BNB Smart Chain. These updates enable users to handle tax calculation and filing more easily.

(1) Concentrated liquidity: A mechanism for liquidity providers to specify a price range when providing liquidity, more capital-efficient compared to the unlimited range liquidity provision of Uniswap v2.

Overview

In response to numerous user requests ahead of the tax filing season, the following phased releases for Uniswap v3 and PancakeSwap v3 are planned:

Phase 1 (current release): Support for cryptocurrency swap transactions
Phase 2 (TBD): Support for liquidity provision and other transaction types

Supported Chains
Uniswap v3: Ethereum / Polygon / Optimism / Arbitrum
PancakeSwap v3: BNB Smart Chain (BSC) / Ethereum

As of January 2024, cryptact's DeFi functionality supports over 30,000 smart contracts and has increased to 531 supported services. It also boasts the largest coverage in Japan in terms of the number of supported exchanges and coins, continually updating its leading status in the number of supported cryptocurrencies and tokens (*2) .

Going forward, the company plans to gradually expand its supported services and blockchains to meet user demands, providing comprehensive support for automated profit and loss calculation in addition to easing tax filing burdens for DeFi transactions.

(2) As of November 2023, based on the company's research on domestic cryptocurrency profit and loss calculation services.

About Uniswap

Uniswap is an “AMM (Automated Market Maker) type” DEX (Decentralized Exchange) that utilizes the smart contract functionality of the Ethereum blockchain. As of January 2024, it has over $4 billion in assets under management.