Every day, Web3 businesses rely on accurate crypto data to operate smoothly. For fund managers, it’s more than just managing LPs’ funds and crafting killer strategies; it's also about meticulously tracking positions and ensuring precise P&L calculations. The ability to monitor allocations and performance can make or break a fund. Fund admins must reconcile portfolios accurately for their clients, while custodians are tasked with presenting a detailed overview of AUC, tokens, and positions.

Accurate crypto data is crucial for this. Thanks to the emergence of many RPC and API providers over the past years, we no longer need to run clients and write command lines to get human-readable data from the blockchain. However, very few cater to the specific needs of organizations like funds, fund admins, treasuries, and CEXs that need to fetch and present complex data and information. For instance, if you are a fund running leveraged yield farming strategies across different protocols and chains, simply seeing the balance of the LP token received from a liquidity pool isn't very helpful when it comes to understanding the P&L of the position and the overall portfolio.

The Scalability Challenge

The existing approaches also struggle with scalability issues as providers have to constantly play catch-up with the market. Unlike TradFi, where everything is standardized and slow to change, the crypto market is a fast-changing landscape—new tokens, chains, and protocols are created daily, and new trends emerge every few months. For example, restaking, liquid re-staking, and point farming are new trends that have only emerged in the current bull cycle. Consequently, many funds and businesses revert to good old Excel spreadsheets when other solutions fall short. But manual processes eat up time and are prone to errors, especially when you are managing multiple custody/trading accounts across multiple chains.

Blockchain technology is poised to revolutionize the financial industry, eliminating inefficiencies in the system—there must be a better way to gather and read crypto data than hours of Excel marathons!

Enter the MetaMask Institutional (MMI) Reporting API

MMI is dedicated to onboarding all organizations on planet Earth to Web3. In order to achieve this mission, we are committed to solving the difficult challenges presented in the space to enable a delightful and frictionless user experience for enterprises.

In our quest to simplify reading crypto data, apart from providing API access that retrieves basic information such as an overview of token, NFT balance, Defi positions, we’ve launched APIs that cater to the specific reporting needs of enterprises that no one else in the space can offer. They include our Snapshot, Defi P&L and performance APIs. The DeFi P&L and performance APIs are particularly unique as they are powered by the MMI DeFi adapters developed by the protocols themselves. The notion behind these adapters is to solve the scalability issue that was discussed earlier in this blog.

Just like how ERC20 became an industry standard for utility tokens to make it easier for various platforms and protocols to integrate, MMI aims to define a standard for fetching data and interacting with various DeFi protocols, which often have unique interfaces and data structures. Instead of having the engineers to play the never ending catch-up with the crypto market, protocols/builders contribute to our Defi data standard by building adapters. An adapter aims to accomplish two things:

1. Fetch and transform underlying protocol data into a standardized format that can be easily used by portfolio dashboards.
2. Generate transaction parameters to create and update protocol positions.

How Can Different Organizations Benefit?

1. Crypto Funds Automate your reporting and operations. Instead of wasting hours logging into different platforms, taking screenshots, and feeding data manually into Excel that is prone to human error, let our APIs do the heavy lifting, as your time is valuable. Click here for an example of a daily valuation statement powered by our Snapshot feature, and it’s also available via API.

2. Crypto Fund Admins Why hire additional headcount for manual Excel work when you can leverage our APIs to automate portfolio reconciliation for your clients? An automated approach enhances data accuracy and efficiency, thereby boosting customer satisfaction and retention. Also, with more efficient processes, your business can take on more clients, scale and generate more revenue.

3. Custodians Go beyond presenting accurate AUC, token, and position overviews. Stand out from the competition by offering advanced and granular reporting functions. For instance, provide a detailed breakdown of the underlying assets that make up an LP token, including respective balances and P&L (see below example). This kind of transparency can set you apart in a crowded market.

4. Web3 Neo Banks, Wallets, and Dashboard Providers Be the pioneer in your region by offering premium Web3 reporting functions. Become the go-to platform, allowing users to check their crypto balances across all of their wallet addresses (e.g. MetaMask, Ledger, Phantom, Safe), providing a holistic view instead of just their holdings on your platform to increase stickiness. Or imagine offering internet banking-like features such as daily valuation statements to drive user engagement. Essentially you can build and whitelist all the features below (see screenshots) via the MMI API set.

Conclusion

To truly drive blockchain adoption and create widely-used DeFi killer apps, we must simplify the process for enterprises to read and integrate DeFi data. At MMI, we're not just known for being the only multi-custodial, enterprise-grade wallet in the space, we're also pioneering a new DeFi data reporting standard that aims to provide a scalable and reliable method for businesses to seamlessly read and integrate Web3 data into their daily operations and platforms.

If you're interested in learning more and getting free access to experiment with our API set, please email MMI_Sales@consensys.net or reach me directly at cherry.yim@consensys.net for any questions.