Overview
Rotki is a desktop application that tracks cryptocurrency portfolios, DeFi positions, and traditional finance assets while keeping all data local on the user's machine. Founded by Lefteris Karapetsas (a former Ethereum Foundation researcher), Rotki integrates with exchanges, blockchain protocols, and DeFi platforms to aggregate portfolio data, calculate profit/loss, and generate tax reports — all without sending financial data to any server. The application supports Ethereum, Bitcoin, and multiple EVM chains with deep DeFi protocol integration.
Technology
Rotki's technical architecture is built on a Python backend with an Electron-based frontend. The application runs locally, connecting directly to blockchain nodes and exchange APIs to pull data. DeFi decoder modules parse on-chain transactions across protocols (Aave, Uniswap, Compound, MakerDAO, etc.) to calculate positions and PnL. The open-source codebase is actively maintained with regular releases. The technical depth of DeFi transaction parsing — correctly interpreting complex multi-step DeFi transactions for accounting purposes — is genuinely impressive.
Security
Security is exceptional by design. Because Rotki runs locally and never transmits financial data to external servers, the attack surface for data theft is minimal. API keys for exchanges are stored locally and encrypted. The open-source codebase allows full security auditing by anyone. This architecture eliminates the categories of risk present in cloud-based portfolio trackers, where a server breach could expose millions of users' financial histories.
Decentralization
Rotki is fully decentralized in the most meaningful sense — there is no central server holding user data, no cloud dependency, and no ability for the company to access user information. The open-source license means the software can be forked and maintained by anyone. This is genuine decentralization applied to financial tooling, not just blockchain-level decentralization.
Adoption
Adoption is modest but growing among privacy-conscious crypto users. Rotki has a dedicated user base, particularly among DeFi power users who need detailed transaction accounting. The premium tier (which unlocks additional features) provides sustainable revenue. However, the local-first model has a higher setup friction than cloud-based alternatives, limiting adoption among casual users who prefer the convenience of web apps.
Tokenomics
Rotki does not have a token. The project is funded through premium subscriptions and Gitcoin grants. This means there is no speculative token component — the "investment" in Rotki is purely functional (buying the premium tier). The absence of a token reduces the scoring in this dimension but is arguably the right model for a privacy-focused tool.
Risk Factors
- No token: No direct crypto-native investment vehicle
- Setup friction: Local installation and configuration is harder than web apps
- Funding sustainability: Reliance on premium subscriptions and grants for development
- Competition: CoinTracker, Koinly, and other cloud-based tools are easier to use
- DeFi complexity: Keeping up with new protocols and chains requires constant development
Conclusion
Rotki is a principled project that applies the crypto ethos of privacy and self-sovereignty to financial tooling. The 4.0 score reflects excellent technology, genuine privacy protection, and true decentralization, moderated by limited adoption and the absence of a token-based value accrual mechanism. For users who value financial privacy, Rotki is the gold standard in portfolio tracking.