Aave Case Study: Streamlining back-office processes
Aave is a decentralized finance protocol that allows people to lend and borrow crypto.
Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.
Aave is one of the most popular and trusted DeFi lending protocols in the market. After exponential growth in early 2020, they were handling thousands of cryptocurrency payments per day. The team soon realized that monitoring millions of dollars flowing through your wallets and accounts is a nightmare. It required hours of manually tagging transactions, adding descriptions, summarising the necessary information, and creating accounting reports. Most DeFi projects end up facing these issues.
Thus they were looking for a simple tool to automate all these tasks. This would save them a lot of time and manual effort. They wanted to monitor and manage all these transactions from a single dashboard. While looking for such crypto accounting tools, the team stumbled upon Cryptio. After looking at multiple automated bookkeeping tools in the market, Aave chose Cryptio.
How Cryptio helps DeFi projects like Aave
Once onboarded, the Aave team easily synced all their wallets and exchanges on Cryptio. They could now monitor and summarize all their transactions at one place. This includes important information such as cost basis, income statement, gains and losses, and tax implications. As Aave is based in the UK, all these transactions and calculations are valued in Pounds (GBP). These tasks are done automatically.
"The customer support received was one of the key reasons we chose Cryptio" - Pablo Candela, Head of Support at Aave
They can also tag and label these transactions more easily. This adds a ton of description for every cryptocurrency activity. Moreover, they get access to customized on-demand reports and in-person assistance for further analysis. Finally, Cryptio helps the accounting team at Aave to connect their crypto data to their Xero account.
"Thanks to cryptio we are able to optimize our tasks and save time and resources"
Thus, Cryptio helps DeFi startups automate these accounting and bookkeeping tasks. This will help them reduce manual efforts and save time. It also simplifies compliance and tax reporting. Moreover, easy integration with accounting systems makes it easy to import the crypto transactional data into Xero or QuickBooks.