Tax Guide for 8lends Investors via Blockpit

8lends income splits into three taxable layers, and Blockpit imports every Base transaction from a wallet address in minutes. See how the setup works before your next filing.

Blockpit is the primary crypto tax service recommended by 8lends for preparing tax reporting. The service supports 100+ countries, integrates with 150+ exchanges and 170+ blockchains, including Base. For 10 countries (including Germany, France, Spain, the USA, the United Kingdom, Austria, Switzerland, Italy, Belgium, the Netherlands), Blockpit provides pre-filled tax forms tailored to local legislation. For other countries, the service generates a general report. This article is not individual tax advice but a guide to the approach. For specific decisions, consult a tax advisor in your country of residence.

Why Blockpit is the recommended 8lends service

Feature	What it provides
European focus	Blockpit is a European leader focused on EU tax laws, founded in Austria in 2017
KPMG partnership	KPMG-audited frameworks ensure regulatory reliability
Base support	Automatic import of transactions from the Base blockchain by wallet address
Localized algorithms	Understands the difference between FIFO and HIFO accounting methods
Tax-loss harvesting	Built-in tool for optimizing taxes via loss-making sales
Pre-filled forms	For 10 countries — ready-made forms for filing with the tax authority

In 2023, Blockpit acquired Accointing — another popular European service. It is now the dominant player in the EU/UK/CH segment.

What's important to understand about taxes on 8lends

8lends is a Web3 platform, and its tax model has three separate layers:

Interest income from investments (USDC)

Monthly interest payments (19–25% APR) arrive in USDC
In most jurisdictions, taxed as interest income
The rate depends on the country — from 0% to 50%+

Capital gain / loss on selling a position

If you sell a position via the Secondary Market
If you sell 8LNDS on Uniswap
In most jurisdictions, taxed as capital gain

Receiving 8LNDS tokens

Via Proof of Loan, the referral program
At the moment of receipt, it is usually taxed as income at market value
Subsequent sale — capital gain/loss relative to the price at receipt

These three layers are taxed under different rules in most jurisdictions.

How to set up Blockpit for 8lends — step by step

Step 1. Register on Blockpit

Open blockpit.io
Create an account by email
Select your country of residence
Confirm your email

Step 2. Connect a wallet on Base

For blockchain wallets, simply enter your public address — Blockpit automatically imports all transactions and categorizes them for tax accounting.

In the Integrations section → Add wallet
Select the Base network (or Ethereum-compatible)
Enter the public address of your wallet
Blockpit will pull in all transactions automatically

⚠️ Only the public address is entered — not the private key, not the seed phrase. This is safe, like giving someone an account number for a deposit.

Step 3. Connect exchanges (if you use them)

If you buy USDC on an exchange:

Connect your Binance, Coinbase, or other account via API (read-only)
Blockpit imports the history of purchases and withdrawals

Step 4. Check transaction categorization

In case of missing data or possible discrepancies, Blockpit shows warnings. It is recommended to check the imported data manually before generating a report. Blockpit also automatically detects duplicates and flags them for review.

Categories relevant for 8lends:

Investment / Loan — your investments in projects
Interest income — monthly interest payments in USDC
Loan repayment — repayment of loan principal
Reward / Airdrop — receiving 8LNDS via PoL and referrals
Trade — operations on Uniswap (selling 8LNDS, swapping)

If Blockpit categorizes a transaction incorrectly, fix it manually.

Step 5. Generate the tax report

Select the tax year
Select the country (if it's in the list of 10 supported ones — you'll get a pre-filled form)
Download the report in the required format (PDF, CSV, Excel)
For Germany — you'll get the information for Annex SO as a PDF. Alternatively, export the data to CSV or pass it into tax software such as WISO or SteuerGo

What data is needed for the report

Blockpit automatically collects:

All transactions from your wallet on Base
Cryptocurrency rates at the moment of each transaction (to calculate USD/EUR value)
The category of the operation (investment, income, sale, etc.)
Cost basis for each position
Capital gain/loss on sales

What Blockpit does not do:

Does not file a tax return for you with the tax authority
Does not pay taxes
Does not act as a tax advisor (but provides a basis for calculation)
Does not cover off-chain operations (cash payments, bank transfers)

Alternatives to Blockpit

If Blockpit isn't a good fit:

Koinly — a global service, supports 100+ countries, generates generic tax reports for 34 countries and pre-filled forms for the USA
CoinTracker — popular in the USA, integrates with TurboTax
CoinTracking — a German service, historically strong in the DACH region
TokenTax — founded in 2017, supports US, UK, Canada, premium consultations
ZenLedger — for the USA with support for TurboTax/TaxACT
Manual accounting — export history from basescan.org and work with a tax advisor

Choosing a service is the investor's personal decision. 8lends does not have an exclusive partnership with any of them.

Cost basis — the key tax parameter

Cost basis is the base value of an asset for calculating profit/loss on sale.

Example

An investor invested 1,000 USDC in a project → received 40,000 8LNDS via PoL (at a price of $0.001 = $40 at the moment of receipt).

Cost basis of 8LNDS:

If received via PoL: cost basis = $40 (as income at market value at the moment of receipt)
This income has already been taxed as income in the year of receipt
On sale: capital gain = (sale price − $40) × quantity

Example of capital gain calculation:

Action	8LNDS price	Value	Tax base
Received via PoL	$0.001	$40	$40 income in the year of receipt
Sold a year later	$0.003	$120	Capital gain $80 ($120 − $40)

If you don't account for the income at the moment of receipt, you'll overpay tax on sale (you'll have to declare the entire $120 as gain).

Cost Basis calculation methods

Different countries use different methods:

Method	Description	Where used
FIFO (First In First Out)	First bought = first sold	Germany, Austria, many countries
HIFO (Highest In First Out)	The most expensive are sold first	USA (advantageous for optimization)
LIFO (Last In First Out)	Last bought = first sold	Less common, in some jurisdictions
Average Cost	Averaged value across all purchases	UK (share pooling), several countries
Spec ID	You specify the specific units on sale	Possible in the USA with clear documentation

Blockpit understands the difference between FIFO and HIFO methods and applies the correct method for each country.

What to keep for the tax return

Full transaction history — via Blockpit or basescan export
Wallet address — for verification
Prices at the moment of transactions — Blockpit records this automatically
Confirmations of USDC purchase — if you bought on an exchange or via Meld.io
Screenshots of the 8lends interface — for documentary confirmation of participation in investments (if the tax authority requests it)

It is recommended to keep this data for at least 5-7 years (the standard in most jurisdictions).

When to consult a tax advisor

Especially recommended in cases of:

Large investment amounts (from €10,000+ annual income)
Several crypto platforms simultaneously (a complex picture)
International residency (double taxation)
Business account (rather than personal)
Complex cases (inheritance, divorce, emigration)
Tax audit or requests from the tax authority

Blockpit provides the base report, the tax advisor provides the final decision for the specific situation.

Frequently asked questions

Is it mandatory to use Blockpit specifically? No. Blockpit is the recommended service due to its European focus and partnership with KPMG. You can use Koinly, CoinTracker, CoinTracking, TokenTax, or manual accounting. The main thing is to have correct tax reporting.

How much does Blockpit cost? A free plan for portfolio tracking. Paid plans depend on the number of transactions — from around €50 to €1,000+/year for active traders. Exact prices are available at blockpit.io/pricing.

Does Blockpit pass data to the tax authority? No. Blockpit is a tool for preparing a report. Filing a return with the tax authority is the investor's task (or their advisor's). Blockpit does not exchange data with tax authorities.

Is it safe to give Blockpit access to my wallet? Blockpit requests only the public address to import transactions — this is open information on the blockchain. The private key and seed phrase are not passed. This is safe — like giving someone a bank account number for a transfer.

What should I do if Blockpit incorrectly categorized my operations on 8lends? Fix it manually in Blockpit. For example, if a PoL reward is flagged as "Trade" instead of "Reward" — change the category. After all corrections, generate the report.

Can I file a return through Blockpit? Only for the USA and the United Kingdom are there pre-filled forms. For other countries, Blockpit generates a report that you attach to your return (filing — via the local tax portal or a tax advisor).

What if I invested on 8lends and other platforms — will Blockpit account for this? Yes. Blockpit aggregates data from all connected sources — Binance, Coinbase, MetaMask, 8lends, Maclear, other protocols. This gives a single report on all crypto income.

Is transferring 8LNDS to your own other wallet taxed? Usually no — this is a transfer between own wallets, not a transaction. Blockpit flags such operations as non-taxable when configured correctly (you need to confirm that both wallets are yours).

What if I forgot to declare crypto income in a past year? This is a violation of tax legislation. Recommendations: (1) file an amended return — in most countries this is possible with reduced penalties, (2) consult a tax advisor for an optimal plan of action. Don't ignore it — tax authorities are increasingly working with crypto data (DAC8 in the EU from 2026).

Should I pay taxes if the amounts are small (for example, $50 from PoL)? Technically — yes, income remains income regardless of the amount. Practically — most countries have a tax-free minimum (for example, €600 in Germany for misc income, or a personal allowance for capital gains). Clarify with an advisor or in the local FAQ.

What is DAC8 and how does it affect me? DAC8 is a European directive on the exchange of tax information on crypto assets, in force from January 2026. This means that crypto exchanges and major platforms will automatically pass data about EU-resident clients to their tax authorities. It makes evading declaration much riskier.

Where do I get the USDC/EUR rate at the moment of the transaction? Blockpit does this automatically. Alternatively — use the rate of the country's central bank on the day of the transaction (for official accounting) or the average market rate (for simplified).

⚠️ This article is a general guide to approaches, not individual tax advice. For specific decisions regarding your situation, consult a qualified tax advisor in your country of residence.