Merlin DeFi Portfolio Tracker: How do we make a difference?

As you already know Merlin by VALK monitors and analyses all the on-chain data about one’s DeFi positions across multiple protocols and blockchains. In this article, we’ll give you a glimpse into how Merlin manages this task.

Build On Merlin
4 min readMay 13, 2022
V1 of Merlin’s interface for the initial launch

What is the tech stack under Merlin’s hood?

Extracting historical data is a tough task and requires a sophisticated tech stack.

In simple terms, to provide a constant feed of accurate historical data Merlin combines data indexation from The Graph and Subgraphs created internally with any data that we can pull directly from the native blockchain and Etherscan.

How does Merlin stand out among other tracking & portfolio management tools?

We have already compared Merlin’s features to those of the current top players in DeFi tracking and portfolio management in our previous article. Now let’s take a deeper dive into how it’s going to look like in practice and why use Merlin as your go-to tracking & portfolio management tool for all things DeFi in general.

A little disclaimer here: as Merlin is the only DeFi wallet tracker on the market that shows information related to previous positions, including closed positions, we can compare Merlin with other tools only for the open positions.

Let’s view liquidity provision (LP) to Uniswap V3 by wallet 0xab…98 as an example.

Wallet Tracker A

Wallet Tracker A can recognise only the open positions where the investor has committed $25mm into a WETH/USDT liquidity pool. The tracker provides the composition of the pool by asset both in token and dollar values, as well as any claimable fees for each asset.

All in all as an investor in the pool you see: 1. The amount of WETH and USDT that comprise the pool 2. Claimable fees. There is no further information related to investor’s chosen strategy apart from basic details about WETH and USDT assets performance.

Wallet Tracker B

Wallet Tracker B has also identified the same position for the investor. Similarly, it can identify the size of the pool, the balance of each asset in ETH and USDT, as well as total rewards. There is no option to zoom in or learn more about this position. Hence, the investor can only get generic information related to the protocol such as total deposits and largest users, but no analysis or detailed transactional information whatsoever. Finally, as with Wallet Tracker A, Wallet Tracker B does not show any historical information related to past positions.

Is it different with Merlin?

Merlin also identifies the same liquidity pool.

However, on top of that Merlin also:

· Identifies any open and closed positions on Uniswap V3 and other major supported protocols since the first executed transaction by that wallet

· Filters out information by protocol and transaction (e.g., added liquidity, exchange, deposit, borrow and more). Distinguishable open positions are marked by the green circle while closed positions are marked by the grey circle.

Example of how Merlin filters out information on Uniswap V3

· Calculates total yield and total PNL related to the position.

· Shows inner transactions, in the given example this would be movement of WETH and USDT in and out of the liquidity pool

· Checks whether the investor is in range or not

· Calculates the impermanent loss

· Presents the full picture for both unclaimed and claimed fees. Soon, Merlin will allow investors to claim fees directly from its interface without having to switch the platforms

We can zoom in even further and view micro-transactional information by clicking ‘tx details’. Here, the investor can see more about the performance of the position, inner transactions as well as further info including:

· PNL with and without tx fee

· txn hash, receiver

· block number

· txn type

Here is how investors will view all their transactions related to UNI asset and the protocol Uniswap V3.

Exciting, isn’t it? Merlin will be released in a mere couple of weeks. Meanwhile, we‘ll tell you more about the different features that our portfolio tracker offers.

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