Correct capturing of staking and farming in CT

Hi,
I have been dealing with a few types of staking and farming kinds and I am confused over the correct way of representing those in CT.

  1. Regular Uniswap staking:
  • You first provide liquidity to a LP: a qty of ETH and a qty of an equal value of the paired coin, say ORN. You get in return a qty of UNI-v2 tokens.
  • You stake that UNI-v2
  1. Farming addition
    You send the locked liquidity (the UNI-v2 tokens) to a liquidity locking service.
    You lock the UNI-v2 in the farming LP pool.

For both steps you perform the reverse steps when you remove LP from the farm/ staking. In addition, you have additional received tokens from the staking and, if applicable, from the farming. These are known as rewards and they get “claimed” or “harvested”.

CoinTracker representation:

  • What is the correct way of representing this? Other tax services have tags for sending to pool or providing liquidity.
  • The only tag you seem to have is for “staking reward”, which is clear cut - as you have separate tx for claiming those rewards, as per the above. Easy to spot and mark.
    Yet, getting the UNI-V2 tokens is represented as a trade - why is that? And what is the impact of such misrepresentation, on taxes?
  • As for farming, you just have the coin being sent - to somewhere - no specifics, no means to mark as sent to LP.
  1. Single coin staking on services using UNI
    In this case you contribute one coin qty that is split / converted into 2 - for e.g. ETH and ORN and then it gets converted back to ORN when withdrawing.
    In this case you have an additional tx showing up.

  2. Single coin staking on CEX (e.g. Kucoin)
    Here things are a bit more manageable. Even though the regular reward receipt is not captured (as it is in other tax SW), you can easily subtract the sent amount from the received amount and you create a received tx that you then label as staking reward.
    But why isn’t all of this captured automatically?

So, two questions:

  1. What is the correct representation of the above in CT - see #1-4, so that we don’t mess up our taxes? I suggest that you write up a guide for this - I am very surprised that you don’t have one, yet.
  2. When will you provide automatic handling of staking and farming? This is a key functionality.

Otherwise, you have a good product (minus some bugs- where you can’t locate the price of the tokens, etc). I LOVE the Binance Margin handling - this is what made me switch to CT - but I still have to use another one service, to deal with the bugs.

Thanks,
Krakatau

1 Like

Same here, good question

This is a perfect breakdown of what a lot of people and myself are experiencing. Was it ever answered or did you figure this out?