DeFi records need to explain both completed movements and positions that remain open. A wallet balance alone may omit supplied assets, borrowed amounts, or a claim represented by a position token. Follow each position from entry to exit, preserving the protocol context and dated evidence needed to understand changes along the way.
Decentralized finance applications can exchange assets, maintain liquidity positions, or record supplied collateral and borrowing. A useful ledger connects the movements into and out of those applications with the position that remains afterward. Otherwise, a deposit may look like an unexplained disappearance from the wallet.
Define what each record represents: tokens held directly, a claim on underlying assets, a position identifier, or a liability. Keep these categories explicit before combining values. Recording a receipt token and its underlying claim as two independent holdings can overstate the same economic position.
Preserve the network, protocol, relevant contract or pool, position identifier, and account. Record asset quantities, debt quantities, associated transaction references, and the time or block of each observation. A liquidity position may require more context than the quantity of one token shown in a wallet.
Protocol measures also need a timestamp and definition. Aave's explanation of health factor shows how a borrowing measure depends on collateral, debt, prices, and protocol thresholds. Treat such a measure as contextual information about that position at that moment, rather than a permanent label.
Identify the opening action and the assets it contributed. Then follow later additions, withdrawals, swaps, repayments, or other changes supported by execution evidence. Record fees in their actual assets and link related movements to the same action without collapsing unlike quantities into one total.
Compare the latest position evidence with that history. If amounts changed without an obvious wallet transfer, inspect the protocol's accounting and the period covered by the observation. Preserve an unresolved explanation when the available export cannot describe the position fully.
The DeFi swaps, liquidity, and lending guide follows these relationships in detail. Use the cross-account reconciliation guide to connect position activity with exchange and wallet records.
A displayed rate is not a completed receipt, and a current position value does not reveal every movement that produced it. Preserve the source and observation time of estimates, then distinguish them from quantities actually recorded in transactions or account state.
Contract permissions are another part of the picture. The Web3 permissions overview helps document continuing authority associated with an application. A position snapshot can explain what exists while leaving that authority question unanswered.
A protocol can maintain a position or liability that is not fully described by tokens moving through the wallet. Combine transaction evidence with dated position information, including the relevant contract, supplied assets, debt, and any position identifier.
First establish whether they describe the same claim. A receipt or position token may represent underlying assets already included in a protocol view. Document the relationship before combining totals so the same holding is not counted twice.
A displayed rate or estimate describes an expectation or current calculation. A completed receipt needs supporting movement or balance evidence. Retain the estimate with its source and timestamp, separately from recorded asset quantities.
DeFi activity can change what you hold without producing a simple payment history. Build linked records for transactions and positions, distinguish deposits from borrowed assets, and reconcile liquidity shares, fees, and debt with observations taken at a defined block.
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A reconciliation explains how opening crypto quantities become closing quantities across every account in scope. Follow a practical workflow for gathering evidence, matching internal transfers, separating fees, and resolving discrepancies without hiding missing activity behind a balancing adjustment.
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A wallet history does not explain every permission an application holds. Learn how to keep connections, approvals, signatures, and completed transactions in linked records, then review the evidence without confusing a disconnected website with a revoked allowance.
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