A current portfolio balance is not a complete record of DeFi activity.
Tax and accounting work needs the path behind the balance: what entered the wallet, what left it, which contract or platform was involved, which chain recorded the event, what fees were paid and what new position or claim was created.

Build the record in layers:

1. Inventory every wallet, exchange and chain used.

2. Preserve raw transaction and transfer exports before services change their interfaces.

3. Record chain identity, timestamps, assets, amounts and fees consistently.

4. Link both sides of bridges and transfers between accounts you control.

5. Track the full lifecycle of liquidity, staking, lending and vault positions.

6. Separate spam or misidentified assets from legitimate holdings.

7. Keep a short notes log for migrations, refunds and other events whose meaning is not obvious from the transfer rows.

8. Reconcile the resulting balances against the actual portfolio.

Classification can be corrected later when the underlying evidence survives. Without that evidence, a clean-looking dashboard may hide gaps that are difficult to reconstruct months afterward.

Full TokenToolHub recordkeeping guide:

https://tokentoolhub.com/defi-portfolio-tracking-and-tax-records/

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