Author: Elias Zenkich
Category: CoWmunity Growth
Cartera is a crypto accounting tool that provides a streamlined, accurate solution to maintain tax compliance. Our tool is the first to automate the analysis of transaction data as an indicator of tax treatment in order to maintain total coverage of transactions on chains we support. Through our integration with Ethereum, we have achieved complete coverage of Ethereum protocols in our tax calculator in under 6 months of development time with a single developer, far exceeding the capabilities of any existing tax calculation platform.
Our initial release will feature everything you need to get a comprehensive view of your portfolio and associated tax obligations, including capital gains and losses calculations, transaction history reporting, and data aggregation from both wallets and exchanges.
Elias Zenkich: CEO - Product, Growth
Michael Pauls: CTO - Solution Architecture
Elias has a Bachelor of Science degree in Economics with a concentration in Finance and Legal Studies from the Wharton School. He previously worked as an Associate Investment Professional at Oaktree Capital Management. Today, Elias is a cryptocurrency investor and trader who has amassed over $20M in transaction volume across 30k+ transactions, giving him first-hand experience with the broken tax accounting system in crypto.
Michael holds a Master of Engineering in Computer Engineering and a Bachelor of Engineering in Computer Engineering, both from the University of Illinois at Urbana-Champaign. He has worked as a Software Engineer III for Machine Learning Development at Ziprecruiter and as a Software Engineer II for Machine Learning Development at Workday.
Demand for crypto tax software increased 33x from 2018 to 2022, indicating that tax filing may be one of the primary anxieties of new users and institutions jumping into DeFi. Cartera provides a comprehensive solution for tax compliance in the DeFi space. As DeFi continues to gain traction, our tool can provide a much-needed solution for the tax compliance needs of DeFi traders. By reducing the barriers to adoption for retail and sophisticated users participating in DeFi, we hope to help bring more users into the Web3 ecosystem.
Integration with Cartera means no more manual tax calculation, no more egregious errors, and no more dedicated tax accounting departments for users in your ecosystem. Whenever possible, we plan to offer free trials and incentive programs to communities with large retail user bases to further reduce barriers to adoption.
We are applying for $10,000 in grant funding, to be used in two ways:
- $2,000 USD to compensate a developer who will run a light audit to ensure Cartera is properly integrated with CoW; this will ensure that any potential issues are captured upfront by our team
- $8,000 USD will be paid out to new customers of Cartera who made transactions on CoW. We’ll payout redemptions based on a simple off-chain confirmation method to ensure new customers must be users of CoW to receive the discount.
Timely rollout of Cartera in preparation for the 2023 tax season and confirmation that our platform works seamlessly with all transaction types on CoW. A key part of our goal is also to facilitate onboarding of DeFi users onto Cartera in our covered regions (starting with the US).
We will measure success based on our ability to carry out the above, and so far have gotten great feedback from prospective users and in assessing accuracy of our tool against incumbents.
[DONE] Discord bot (May) - a discord bot that feeds back transaction summary data when sent a transaction ID; this transaction summary data is the basis of DeFi accounting and tax calculation
MVP (June) - MVP for reporting transaction summary data for a wallet’s end of year tx history
Protocol accuracy testing (July) - validating that MVP is 100% accurate on CoW
Analytics dashboard (September) - expanded portfolio analytics features incl. daily capital gains & losses
Final front-end (November) - usable Cartera app
Setup apply for a refund / discount code flow (Dec) - redemptions from customers who provide evidence that they use CoW
Launch and marketing (Jan) - official launch of Cartera for tax season 2023