New: multi-entity reconciliation is liveNow indexing Cosmos, Substrate, Solana & BitcoinPost journal entries straight to QuickBooks OnlineRead-only API access, no keys, no withdrawal permissionsBook a 30-minute walkthrough with our team
SimplyLedger

Most crypto accounting tools get LP withdrawals wrong

One LP withdrawal gives you back two very different things: principal and fees. SimplyLedger reads the pool's state at the exact block of each deposit and withdrawal, and splits every withdrawal into the two.

1 min read

One withdrawal, two very different things: an LP withdrawal in SimplyLedger split into principal and fee income for stETH and ETH, alongside Uniswap, Curve and Balancer positions

This is how we solved it at SimplyLedger.

The problem

When you pull liquidity out of a pool, one transaction gives you back two very different things. Part of it is your principal, the capital you originally put in. The rest is the trading fees your position earned while it sat in the pool.

On-chain there is no distinction. You just see tokens leave the pool and land in your wallet.

Most tools on the market can’t separate the two. They either treat the whole withdrawal as one amount, or leave the finance team to estimate the split in a spreadsheet.

How we do it

For every LP position, SimplyLedger reads the pool’s state on-chain at the exact block of each deposit and withdrawal. Comparing the pool when you entered with the pool when you exited tells us exactly how much of each withdrawal is fees and how much is principal, so every withdrawal is split into the two.

Every number traces back to an on-chain value at a specific block.

Protocols we support

Today that covers LP positions on Uniswap (V2, V3 and V4), Curve and Balancer across multiple chains, with others in the pipeline.

One view across protocols and chains

In Portfolio, SimplyLedger brings all of these positions together in one place. For each position you see the pool’s underlying tokens, your LP balance, end-of-day pricing and the full history of deposits, withdrawals and fee claims, for every wallet and entity.

If your finance team is still splitting LP withdrawals by hand, send us a message. We’re happy to walk you through how it works.

More on the workflow: LP transactions in SimplyLedger.

← All articles

Keep reading

More from the blog.

Balance alerts on USDC, ETH, DOT and BTC token cards, with an alert sent to email, Slack and Telegram when the ETH hot wallet fell below 25 ETH

Treasury balance alerts: catching problems before month-end

A hot wallet drained below its operating float, or a multisig holding more than policy allows. Set a threshold on any token card and get an email, Slack or Telegram message when the balance crosses it, in both portfolio and accounting.

A portfolio of ETH, USDC and stETH valued in EUR beside the journal entry for a 12 ETH FIFO disposal posted to QuickBooks

Your crypto portfolio tracker is not your general ledger

A portfolio tool tells you what your wallets are worth today. A ledger tells you what you made, what you owe tax on and how it reconciles. Here's where the two split, and why mixing them up causes trouble at year-end close.

Your crypto. Your books. In sync.

Book a call and we’ll walk you through the workflow for your stack.