How to Streamline Crypto Accounting for Accurate Web3 Audits

In this case study summary, we explore the scenario of MELD, an L1 blockchain and non-custodial DeFi protocol, as they face the challenge of preparing their financial books and statements for a third-party audit.

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What was the context around MELD financials?

Blockchain financials are quite complex by nature, prompting their financial team to address the need for accurate data in third-party audits related to cross-chain transactions and the $MELD token.

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Emphasizing the importance of precise financial records became essential to ensure a smooth audit process. Maintaining data integrity is instrumental to avoid potential inaccuracies in both financial and operational aspects.

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The Challenge

The financial team at MELD faced several daunting tasks:

• Reconciling financials across more than thirty wallets spanning multiple blockchains, alongside crypto positions on both centralized and decentralized exchanges.
• Eliminating the burdensome manual calculations and reconciliations that consumed significant time and resources.
• Bridging data gaps, particularly with past accounting tools that failed to capture accurate data for Cardano’s unique staking positions and unspent transaction outputs (UTXO).

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Solution

To overcome these hurdles, MELD adopted Cryptoworth, a state-of-the-art crypto accounting platform, which offered:

• Streamlined and Automated Accounting Processes: Simplifying the complex web of crypto transactions for easier management and reconciliation.
• Advanced Cardano Tokens Integration: Ensuring that specific challenges related to Cardano’s ecosystem are addressed with precision.
• Dedicated Support Throughout the Audit: Providing essential guidance and assistance to navigate the audit process smoothly.

"Cryptoworth has been instrumental in tackling the complex issues we faced in crypto accounting and cash flow management. We highly recommend it to any crypto enterprise struggling with similar challenges." Gennaro Oliviero, Head of Finance, MELD Blockchain

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Results

The implementation of Cryptoworth yielded significant benefits:

• Reduced Manual Workflows: Automation minimized the need for time-consuming manual interventions.
• Accurate Financial Data: Enhanced data accuracy facilitated a smooth and efficient audit process.
• Streamlined Audit Process: Collaborating with the auditor, Cypress Singapore PAC, became more efficient, significantly shortening the audit timeline.

"Our focus on Cardano data accuracy and the automation of these processes proved crucial for MELD. Our ability to deliver tangible value to the finance team within days, not weeks, underscores the impact of our solutions." - Trent Rand, Senior Software Engineer, Cryptoworth

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Conclusion

MELD’s journey with Cryptoworth underscores the transformative potential of specialized crypto accounting tools in achieving audit readiness and operational efficiency. By addressing the unique challenges of blockchain financials, MELD not only streamlined their audit process but also set a benchmark for precision and accuracy in crypto accounting.

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Contact our team or request a free trial today and discover firsthand how Cryptoworth can empower your team to streamline crypto accounting in the evolving landscape of digital asset management