Adding and removing liquidity to automated market making platforms like Uniswap create what we call "Liquidity Pool Transactions". If your liquidity pool transactions take place on a wallet that’s been connected to TaxBit, these transactions will be imported automatically as trades.
Liquidity Pool Entry and Exit transactions are taxed as a disposal. Assets added to the liquidity pool will show up in TaxBit as a trade (Sent assets in exchange for Liquidity Pool token) and the gain or loss calculations will record a taxable event. When you pull your assets out of a pool with your Liquidity Pool token, another trade will be recorded and another taxable event is recorded.
We do support many other kinds of DeFi transactions, so feel free to check out THIS article on the decentralized transactions that we do support.
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