HWSW integrates directly with your Ethereum wallet. Every transfer, swap, airdrop, staking reward, and gas fee is automatically detected, priced at the historical rate, and classified into the right accounting bucket — with full capital gains tracking for UK and US clubs.
HWSW supports both wallet architectures used by on-chain investment clubs. You can use either — or both — depending on how your club operates.
An Externally Owned Account (EOA) is a standard Ethereum address — the kind created by MetaMask, Ledger, or any other wallet app. It’s controlled by a single private key. One person holds it; they can act unilaterally.
How it works in HWSW
A Safe (formerly Gnosis Safe) is a smart contract wallet that requires M-of-N approval from designated signers before any transaction executes. For example, a club might require 3 of 5 members to sign before ETH can be moved — making it impossible for any single member to act unilaterally.
How it works in HWSW
Getting crypto into the club is straightforward. Here’s the exact flow from first deposit to fully recorded ledger entry.
A member sends ETH or USDC to the club wallet
They use their personal wallet (MetaMask, Coinbase Wallet, Ledger, etc.) to send funds directly to the club's EOA address or Safe. Any allowlisted token works — ETH, USDC, WBTC, and all top-100 assets are accepted automatically.
HWSW detects the transaction automatically
Within the next sync cycle (or immediately when triggered), HWSW pulls the transaction from Etherscan and prices it at the historical spot rate in your club's base currency (GBP or USD). The member's address is matched to their club profile.
The transaction is classified and queued for review
HWSW auto-suggests the transaction type based on what happened on-chain — Contribution + Buy for incoming transfers, Swap for DEX trades, Airdrop or Staking Reward for income events, Gas Fee for network costs. The admin reviews the queue and posts each one to the ledger.
Two ledger entries are created atomically
For a member contribution: a Contribution — Digital Wallet (to the member's capital account) and an Investment — Digital Wallet (to the club's asset holdings) are both posted at the same spot price. No phantom gain is created. The member's unit count updates immediately, affecting their NAV share.
Tax lots are minted and the portfolio updates
HWSW creates a cost-basis lot at the acquisition price so any future disposal gain is computed correctly under HMRC Section 104 (UK) or FIFO/Specific ID (US). The asset appears in the club portfolio and flows into all NAV and performance calculations.
The blockchain doesn’t label transactions. HWSW reads the on-chain signals and automatically assigns the right accounting treatment to each event type.
Contribution + Buy
Default for incomingA member sends tokens to the club wallet. Records a capital contribution to their account and a token purchase at the same spot price — no phantom gain, clean double-entry.
Swap / DEX Trade
Taxable disposalETH → USDC, or any token-to-token swap via Uniswap, Curve, etc. HWSW detects both legs by their shared transaction hash and records a Sale (CGT event) + Purchase. Multi-hop swaps are grouped.
Airdrop
Fund incomeTokens received from an unknown contract with no outgoing leg. Treated as fund-level ordinary income at spot price, boosting NAV for all current members. A cost-basis lot is minted for future disposal.
Native Staking Reward
Fund incomeSmall ETH received from a validator withdrawal address — not a disposal. Recorded as staking income at spot price with a micro-lot minted at cost basis. Equivalent to a DRIP dividend reinvestment.
Gas Fee
Fund expenseNetwork fees paid in ETH for every outgoing transaction. Auto-extracted from Etherscan, recorded as a fund expense, and treated as a micro-disposal of ETH — the tax engine computes the resulting capital gain or loss under HMRC and IRS rules.
Liquid Staking (ETH → stETH)
Taxable disposalSwapping ETH for stETH, rETH, cbETH etc. is treated as a taxable disposal under IRS/HMRC guidance. HWSW records the capital gain at conversion, mints a new lot for the wrapper, and does the same on unstake.
Not all staking is equal. The on-chain mechanism determines the tax treatment. HWSW handles each pattern correctly.
Native Validator Staking
ETH staked directly to a validator
ETH is locked in the beacon deposit contract. No new tokens are issued. Periodic small ETH rewards flow to the withdrawal address — each one recorded as staking income at spot price with a micro-lot minted for future disposal.
Rebasing Token (stETH)
Lido — balance increases daily
After depositing ETH into Lido (a taxable swap), you hold stETH. Its balance silently increases each day with no on-chain transaction. HWSW polls the stETH contract balance daily, detects the delta, and mints a synthetic staking income record at that day’s spot price automatically.
Reward-Bearing Token (rETH, wstETH)
Rocket Pool, Lido wrapper
Your token balance stays constant. Instead, the token itself appreciates against ETH as staking rewards accrue in the underlying pool. No daily transactions or income records are generated — the entire yield is realised as a larger capital gain when you eventually swap back to ETH.
The blockchain is full of spam tokens, scam airdrops, and worthless meme coins. If every incoming token was imported automatically, your ledger would be polluted within days.
The problem without an allowlist
Wallets that interact with DeFi accumulate thousands of worthless airdrop tokens, liquidity pool receipts, and spam ERC-20s. Auto-importing everything would create phantom securities in your ledger and drag performance on every query.
How HWSW filters transactions
Only transactions involving allowlisted assets are imported as actionable records. Transactions involving unlisted tokens are flagged as “unavailable” and held in a review queue — the admin can see them but they don’t pollute the ledger. If an entire swap involves an unlisted token, the whole transaction is excluded.
What’s on the allowlist
BTC, ETH, USDC, SOL, BNB and the rest — refreshed daily from CoinGecko
stETH, wstETH, rETH, cbETH, frxETH, mSOL, JitoSOL and more
ezETH, rsETH, pufETH, weETH — treated as swaps with CGT
Member personal tax obligations
Sending tokens to the club wallet may be a personal capital gains event for the contributing member — they are disposing of an asset they personally held. Under HMRC CGT rules (UK) and IRS property disposal rules (US), the member may owe tax on any gain between their personal cost basis and the value at the time of contribution.
HWSW shows the base-currency spot value of each import so members have the figure they need for their personal returns. Members should seek independent tax advice.
Every transaction in HWSW creates an immutable double-entry record linked to the on-chain transaction hash. Your club’s tax data is always verifiable.
HMRC Section 104
UK cost-basis pooling with capital equalisation adjustment for member join/leave events.
IRC §704(c) / K-1
US partnership tax with built-in variation tracking and Schedule K-1 generation.
CGT on swaps
Every token-to-token swap computes the realised gain or loss at the correct spot rate.
Lot-level tracking
FIFO, HMRC Section 104, Specific ID — every acquisition creates a lot so disposal is exact.
Connect your first wallet in under five minutes. Free to get started — no credit card required.