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Liquid Staking Reconciliation

C
Written by Cryptoworth Support
Updated over 2 weeks ago

Liquid staking can present unique challenges in financial reporting, especially when staked assets appear as LP (liquidity provider) tokens in your ledger. This guide walks you through how to properly reconcile these entries.

Example:

Suppose you've just unstaked from a liquidity pool and received a single incoming transaction that includes both your original staked principal and your staking rewards.

In this case, you received 29,397.999995 SOL.

Let’s assume 25,000 SOL was the original staked amount, and the remaining 4,397.999995 SOL is staking income.

Steps:

  1. On the Transactions page, locate the +29,397.999995 SOL incoming transaction.


  2. Click "More", then select Split Transaction.


  3. In the split dialog:

    • Line 1: Enter 25,000 SOL and classify it as Principal Return.

    • Line 2: Enter 4,397.999995 SOL and classify it as Staking Income.

  4. Click Split Transaction to apply the changes.

Step 1: Manually Add Market Value for LP Tokens

When you deposit assets into a staking pool, you often receive LP tokens in return. These LP tokens may not have a market price in Cryptoworth.

  • If you're generating a balance report or conducting a balance audit, you should manually assign a market value to the LP tokens based on the underlying assets deposited.

Step 2: Split the Unstaking Transaction

When you unstake from the pool, you'll typically receive both your principal and staking rewards in a single transaction. This must be split to reflect each component accurately.

Step 3: Categorize the Split Components

Split the transaction as follows:

  • Line 1: Enter the principal amount and classify it as Principal Return.

  • Line 2: Enter the remaining amount and classify it as Staking Income.

    Click Split Transaction to complete the process.

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