LONDON, Sept. 22, 2022 (GLOBE NEWSWIRE) -- VALK, the company building an ecosystem of powerful decentralized tools for smart trading in DeFi, announced today the launch of Merlin, a DeFi portfolio tracker that has solved reporting and analytical difficulties across positions on the blockchain. In a comprehensive dashboard, Merlin provides net worth and transaction history reports for ~1000 protocols across 10 chains, date of entry and exit, yield and more to deliver P&L calculations for main DeFi protocols: Compound, Uniswap V3, Aave, Lido, and more coming soon.
“The Ethereum merge event had a huge impact in driving attention to the Ethereum blockchain and the innovation that it has bolstered until now. We view the post-merge phase as an opportunity to create better tools for the next wave of growth and at Merlin this means improving the DeFi experience with a high-performing portfolio tracker and smart on-chain data analytics,” said VALK co-founder and CEO of Valk, Antoine Loth.
Current Problems with DeFi Portfolio Management
DeFi portfolio managers and investors are lacking the necessary tools to get a granular view of their profit and losses based on their initial investments. Few DeFi portfolio trackers are able to provide deep analytics on the investor’s positions. This means that important metrics, such as PNL per strategy, aggregate debts/fees, yield (in USD) and others are missed out. Most DeFi reporting services only take the investor’s current portfolio position, meaning that in-depth analysis of individual transactions over a period of time is very difficult. For example, an investor running multiple positions across different protocols with the same asset won’t be able to assess individual yields from lending on Aave, or daily PNL from running an LP strategy on Uniswap.
In particular, if a strategy is executed using a non-stablecoin, 2 variables come into play: the yield received in the token (e.g. ETH) that is invested and the token’s price compared to the USD. For example:
- A user deposits 1 ETH into a lending protocol i.e. on Aave
- At the time of deposit, the ETH price at $3000 and yield at 1%.
- After a year the user should have an equivalent of 1.01 ETH, but if the price of ETH decreases to $2500 it would show as a gain in ETH but a loss in USD.
VALK co-founder and Head of Product, Elie Azzi added: “Other wallet tracking tools can only focus on current (open) positions. This causes problems for user who need to keep a database of all their positions: for PNL reporting, strategy comparisons across pools and taxation/accounting purposes. Whilst some tools focus on historical values, these tend to focus on liquidity pools and not on lending/borrowing/staking positions, despite the former only comprising only 1/3 of the $67B TVL (total value locked) across all major chains.”
Introducing Merlin, A Smarter Tool for DeFi Reporting
VALK’s wallet reporting tool, Merlin, provides a simple interface for users to input their wallet address and get a clear view of open and closed historical positions related to that wallet. Merlin supports 1000 DeFi protocols, displaying the portfolio balance, as well as gains and losses in USD/ETH/%, which also account for gas fees. It will also filter out information by protocol and transaction (e.g., added liquidity, exchange, deposit, borrow and more).
Advanced DeFi users and institutions can tap into Merlin’s calculation engine to analyze and improve their trading strategies even more granularly. On selected DeFi protocols Aave, Compound, Lido, Uniswap V3 (and more to be added soon), Merlin calculates total yield and PNL (in USD) related to the position, including the range, impermanent loss and both unclaimed and claimed fees on LP positions. Soon, Merlin will allow investors to claim fees directly from its interface without having to leave the platform.
VALK, having already launched a successful FinTech private markets platform, has committed to launching Merlin as part of its multi-phase plan to bring Smart DeFi to everyone, from individual traders to institutional asset managers, by improving accessibility and overcoming key issues related to DeFi portfolio management.
Merlin’s web app allows connectivity via a wallet address or Web3 connection, and will analyze all positions, strategies and overall portfolio insights from the wallet. From transaction history to NAV and PNL calculation, Merlin has the user covered. VALK’s platform serves individual traders (DeFi newbies and native), DeFi fund managers and admins, treasury managers, and more. Merlin is available and free to use via its app (https://mymerlin.io/), and has opened APIs for industrial use of data and indexation reports.
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