Uniswap Labs

Uniswap Labs, founded in 2019, is a leading innovator in decentralized finance (DeFi). They provide an interface and wallet that connect to the Uniswap Protocol, a decentralized AMM protocol with billions of dollars in weekly trading volume across thousands of tokens on Ethereum and 13+ additional blockchains. The innovative protocol and Uniswap Lab's supporting interfaces have reshaped the way value flows in digital economies, providing users with a decentralised and non-custodial trading experience.

The challenge

For companies offering DEX interfaces, an interface fee unlocks a powerful new revenue stream that can help fund research and development. But it also introduces a hidden cost: a flood of transactions that can overwhelm accounting workflows, turning a simple revenue model into a reporting nightmare.

Uniswap Labs experienced this challenge firsthand after introducing interface fees in 2023. Within the first 100 days, the interface fee generated millions in revenue but also led to a surge in transactions, dramatically increasing accounting complexity and highlighting the urgent need for scalable, automated workflows.

“We scaled from 12 tokens to over 5,000 tokens across 9 blockchains. It was a huge jump- meaning we needed an accounting system in place that was capable of comfortably handling millions of transactions- so when it happened, we turned to Antoine and his team for help."

- Justin Wong, Head of Finance, Uniswap Labs

The solution

Traditional accounting tools couldn't keep up. Spreadsheets and manual tracking became unsustainable, and even internal automation tools struggled to handle the sheer volume of transactions. Uniswap Labs needed a scalable, automated solution – so they turned to Cryptio.

As their back-office system, Cryptio worked with Uniswap Labs as a test partner for the Batching Engine – a solution specifically designed to streamline the processing of high-volume, repetitive transactions, a key challenge for Uniswap Labs and other companies providing interfaces to DEXes.

The Batching Engine, a key component of our Bedrock platform - consolidates similar transactions, such as fee revenue, over a customizable interval (typically 24 hours for daily reconciliation). This dramatically reduces the number of transactions requiring accounting analysis while making revenue tracking more intuitive and user-friendly at the token level.

While the batching engine addressed Uniswap Lab's immediate concerns, Bedrock - Cryptio's latest cutting-edge product update, unlocked additional value:

• Enterprise-scale processing power, handling over 1 billion transactions across 100 million wallets every month.
• 200x faster transaction filter speeds than alternate solutions such as SME sub-ledgers and 80x faster than Bedrock’s predecessor, Colossal (yes, we’re serious about continuous improvement!).
• 50x faster cost basis computation, drastically reducing processing time.
  
  

The results

"Antoine’s team worked closely with us to integrate the Batching Engine. It’s been great. It consolidates all our data daily, and we went from 4 million transactions to analyse from an accounting perspective a month back to hundreds of thousands. There are fewer transactions, our processes are much more efficient, and we can still access the detailed transaction data if needed."

- Justin Wong, Head of Finance, Uniswap Labs

 

By using Cryptio’s enterprise-grade back-office software, Uniswap Labs has streamlined its financial operations, reducing the number of transactions it needs to analyse for accounting workflows by approximately 90%.

With the cutting-edge innovations in database performance management generated by Cryptio Bedrock, they are able to:

• Simplify and aggregate the view of millions of transactions with complete audibility. 
• Load 1M transactions across 5 filters in just 0.51 seconds within Cryptio's accounting UI- compared to ~4 minutes for competitors- saving hours of manual accounting work daily.
• Leverage 350+ database parameters- especially smart contract IDs-to categorise transactions as incomes and expenses at scale.

This transformation has taken the company from grappling with a surge in transactions to efficiently optimising the way it handles millions of transactions per month with a scalable, future-proof system built for growth.

Uniswap Lab’s experience:

"Since partnering with Cryptio in September 2023, we've been consistently impressed by their support. Our weekly meetings with our dedicated consultant have been instrumental in solving our complex workflows. It's clear that the entire Cryptio team is genuinely invested in our success."

- Justin Wong, Head of Finance, Uniswap Labs

Looking forward

Cryptio’s cutting-edge infrastructure allows Uniswap Labs to manage accounting at an unprecedented scale – ensuring robust, automated workflows even as transaction volume grows.

To support Unichain’s recent launch, Cryptio has developed a proprietary indexer, enabling accurate, high-volume accounting on Unichain. This not only supports Uniswap Labs' accounting workflows as Unichain grows, but also supports Unichain’s adoption among third-party builders by providing structured, audit-ready data for accounting and compliance needs.

Are you a company building on-chain looking to solve accounting challenges?

Investing in robust accounting and transaction analysis tools ensures your company not only meets regulatory standards but also achieves operational excellence.

Cryptio can streamline accounting workflows, enhance compliance readiness, and ensure seamless scalability for long-term growth.

Schedule a demo now.