Read-only view of what a DeFi position really earns after Indian tax and fees
TL;DR Yieldsight connects to a user's public wallet addresses and shows what each DeFi position has earned after Indian tax, gas fees and token price moves. It also flags known risks for each protocol. It never holds funds, places trades or tells anyone where to move money. Users pay a yearly subscription.
Indians use DeFi a lot more than you'd think - one blockchain analytics firm ranked India first in its 2025 adoption index, and first on DeFi value received[1]. But Indian tax rules shrink a headline yield to something much smaller. Gains on transfers are taxed at a flat 30% plus cess, losses cannot be set off, fees are not deductible, and staking rewards are taxed at slab rates when received and then again on sale[2]. A 1% TDS applies on transfers[2].
Most dashboards show gross APY. A user rotating between pools may book taxable gains on every move while the losses stay stranded. Many only see the real number when they file, and by then it's too late to do anything.
What it does, in regulatory terms: read-only reporting and education on the user's own public wallet data. It does not custody assets, execute trades, exchange tokens or give investment advice.
You paste your wallet addresses. Yieldsight reads the on-chain history and labels each event as a deposit, reward, swap or withdrawal. For every position it shows gross yield, then tax at the right head, gas, and the price change of the token earned, ending with a net rupee figure. A "what if I exit now" view estimates the tax hit before you move. Protocol cards list audits, past exploits and how concentrated the liquidity is.
The seed pitched an AI that optimises yield strategies. In India that is a poor fit, because RBI told Parliament's finance committee in July 2026 that crypto assets should not be legalised for now[3], and a product that moves users' funds would face FIU-IND's registration process for VDA service providers[4]. So Yieldsight shows numbers and leaves the decisions with you.
Active DeFi users with meaningful balances pay a yearly fee, priced in the sprint. A second line is a CA plan for firms preparing crypto clients' returns during the year, before filing season. Crypto tax apps already sell tax reports and offers free tracking[5], so Yieldsight has to charge for the forward-looking view, not the year-end report.
FIU-IND's January 2026 guidelines tightened what a VDA service provider must do[4], which pushes cautious builders towards read-only tools. Schedule VDA reporting now sits in ITR-2 and ITR-3[2], so more users want their numbers right during the year, not in a panic in July.
No public figure exists for the number of Indian DeFi users or what they spend on tools. India's first-place rank for DeFi value received is the clearest signal[1]. As an adjacent figure, DeFi protocols held roughly US$90 billion (about ₹8.7 lakh Cr) across all chains when I checked[6]. That is global context, not your market.
One Indian crypto tax app serves taxpayers with Schedule VDA reports, auto-labelled DeFi and NFT transactions, and a plan for tax professionals, and claims more than 1.5 million users worldwide[5]. Tax-filing platforms publish crypto tax guidance[2]. Global portfolio trackers show gross yields. The gap is a pre-decision, after-Indian-tax view per position, available while the user can still change course.
| Difficulty | Hard (54/100) |
| Starting capital | ₹71 L–1.34 Cr |
| Time to launch | 4–6 months |
Labelling DeFi events correctly across chains is fiddly, and Indian tax treatment for liquidity pools and lending is not settled in guidance, so every figure needs a stated assumption. The bigger difficulty is regulatory mood: if crypto rules tighten further, your market shrinks overnight.
Yieldsight needs no licence if it stays read-only and non-custodial. The moment it touches funds, that changes.
Building this outside India? The categories above usually have a local equivalent, so check with your own regulator.
Never let AI rank pools or suggest moves. That's investment advice, and tax treatment of unusual DeFi events needs a CA's judgement, not a model's guess.
Want to work out the AI layer for Yieldsight? Talk to Yash →
Here's what can go south -
I'd only go near this if you know DeFi mechanics and Indian tax well and can sleep through policy risk. If you want a large, stable market then avoid it. Prove first that 200 users will pay before tax season, and that a CA signs off on your treatment of pool and staking events.
Plan for roughly ₹71 L–1.34 Cr, mostly on engineering for multi-chain data, tax review and user acquisition.
Not if it stays read-only and non-custodial. A product that holds or moves crypto would face FIU-IND registration as a VDA service provider.
Yes, the tracking engine travels, but tax rules differ by country. You'd rebuild the tax layer and check local crypto rules first.
The free Yieldsight validation kit has the line-by-line capital breakdown, the effort scoring, the tax and AML checklist, a 14-day validation sprint with pass/fail targets, a 90-day launch plan, 10 interview questions for DeFi users and CAs, and 5 assumptions to test. Download the kit →
Thinking about building Yieldsight or something close to it? The make-or-break work is getting tax treatment right on messy DeFi events while staying clearly out of advice, and I'm happy to pressure-test that line with you. If you need a hand, you know where to find me. Talk to Yash →
For illustration only. Names are fictional and ideas hypothetical; sourced facts are real but may be out of date. Nothing here is legal, financial or professional advice, and Yash Khatri is not personally liable for any use of it. Read the full disclaimer.