Alchemy is a Web3 developer platform that provides a suite of tools for dApp development. In addition to node support, Alchemy provides APIs and courses to improve developer workflows.
Alchemy is made up of developer teams with expertise in programming languages including Java, Javascript, Python, and Solidity. It provides developers of all levels with the tools and support they need to launch their Web3 application.
Furthermore, Alchemy utilizes various treasury platform integrations, including DeFi, custodial, and non-custodial MPC wallets. As a result, any automated data-gathering tools they use for generating end-of-month reconciliation reports must be capable of handling this level of complexity, particularly for inter-wallet transfers related to treasury management.
The Challenge
Completing accounting reports for Web3 companies is a task that tends to grow in enormity as soon as you add in degrees of complexity. As DeFi functions and application layers stack, it becomes harder for financial reporting tools to produce accurate reports that have complete datasets.
For Alchemy, this was a problem their financial operations team encountered on multiple fronts. For one thing, many of the available tools on the market could not support Alchemy’s MPC wallet structure or their DeFi setups for Treasury management. This made it challenging to integrate Enterprise-grade platforms into a fully functional workflow. As a result, Alchemy’s financial operations team had to be constantly vigilant to reconcile various datasets and maintain a consistent standard of accounting treatment:
In the dynamic world of Web3, adaptability is essential, and your tech stack is no exception. Nothing remains static. It’s absolutely crucial to stay aligned with business strategy and go-to-market plans, anticipating needs ahead of product development. As Financial Operations, our role is to deliver consistently accurate, timely, and comprehensive reporting. This requires a deep understanding of the landscape and implementing the right tools to meet the needs of your business today and tomorrow.
Sean Soper – Controller
The finance team had to rely on manual processes for their end-of-month reports. This was time-consuming, prone to human error, and put excessive operational pressure on their custodial and DeFi wallet transactions. To add to the complexity, reconciling activities across their wallet structure of hot, warm, and cold wallets only made the situation more challenging.
This posed a significant challenge for Alchemy’s finance teams due to the intricate nature of their use cases within a tightly controlled Treasury Management philosophy, including the management of MPC wallets and integrated tech stacks.
The Solution
TRES was able to offer holistic support to accommodate Alchemy’s tech stack and provide the finance team with a complete data set.
“None of the other solutions provided comprehensive support for our various chains and Enterprise-grade Treasury management systems the way TRES did from the beginning.”
Taking a data-first approach, TRES enabled Alchemy’s accountants to efficiently complete their end-of-month reports using the aggregated data generated by TRES. Additionally, TRES quickly onboarded support for many of Alchemy’s chain partners, enhancing their user experience with features such as indexing, tagging, and FIFO lower-of-cost impairments and improving workflows.
“The team worked quickly to add support for many protocols, including ones they didn’t have at the time and ones they were considering. They did this efficiently and followed a roadmap to develop their application layer in conjunction with the data. This ensured that the fundamentals were strong from the beginning.”
TRES assisted in managing inter-wallet transactions between their hot, warm, and cold wallets. This helped the finance team to easily track the movement of their funds in their dynamic treasury environment. Alchemy maintains a low-risk ratio of fiat to digital assets, which may require frequent adjustments in the placement of their assets.
Before implementing TRES, the finance team had to carefully monitor and track this activity as it occurred. However, by using TRES, they were able to automate much of this process and streamline their operations, resulting in a several day reduction in their financial close process.
“TRES has reduced our financial close process by several days, at a minimum, eliminating the additional latency of a hastily assembled digital asset reconciliation process.”
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