CryptoTaxCalculator supports Defi LP transactions. Usually, we can auto-categorize these transactions when sufficient information is provided on-chain. Sometimes, when the transactions are not auto-categorized or are manually imported, you can follow the below steps to categorize the transactions.

Read more:

Note: Keep in mind that this is the general guidance on using CryptoTaxCalculator to sort out your tax. Always speak to your accountant or local tax professional for your specific tax situation.

Let’s say you participated in an A and B token liquidity pool to earn the yields. The potential flow would look like the below.

You should have the 'buy' transactions for A and B tokens to ensure they have a cost base.

Note: If you don't have the purchase prices for the assets, you will see a 'Missing Purchase History' warning pop up when you provide the liquidity. This will cause incorrect reports.

You add liquidity to the pool and receive LP tokens. 'Add liquidity' and 'Receive LP token' usually happen in the same transaction (with the same Tx ID). They look like the below image:

When they are not auto-categorized, they might be shown as:

where you can categorize them as

If the 'received LP token' value is missing, you can enter the combination of the liquidity values.

This step differs depending on how the token contracts are designed. We discuss a few types below. You can filter the 'A-B-LP token' you received from the previous step on the Transactions page to find the token.

No further step to farm yields after you received the A-B-LP token. In this case, you don't have to worry about this step. You can skip it and jump to the next one.

You stake the A-B-LP token to generate yields. In this case, you should have an outgoing of the A-B-LP token. It should look similar to th below image.

When it is not auto-categorized, it might be shown as:

where you can categorize it as

You deposit your A-B-LP token and receive another token in return. It usually happens in the same transaction (with the same Tx ID). The usage of this new token differs, we do not discuss this further here. The transaction looks similar to the below image.

When it is not auto-categorized, it might be shown as:

where you can categorize them as

You claim yields from staking LP tokens. This step differs depending on how the token contracts are designed. If you have claimed the yields, you can categorize them as a 'Staking reward'.

You withdraw/unstake your A-B-LP token. You should only need to do this if you have gone through Step 3. The transaction looks similar to the below image.

When it is not auto-categorized, it might be shown as:

where you can categorize it as

This is opposite to Step 2. You send LP tokens back to the pool to remove liquidity from the pool. 'Send LP token' and 'Remove liquidity' usually happen in the same transaction (with the same Tx ID). They look similar to the below image:

When they are not auto-categorized, they might be shown as:

where you can categorize them as

If the 'send LP token' value is missing, you can enter the combination of the liquidity values. For example,

and