Defi Functionality?

Hello,

I paid for the upgraded service that allows 3,000 transactions and claims to have defi functionality. Even with this, Cointracker seems very confused by my Defi transactions. It does not understand the value of any of the transactions, and does not know what “coin” the various contracts are. Doesn’t seem very useful, but maybe I’m missing something.

For example, I have sent various coins such as USDC, DAI, ETH, and WBTC to hold in the compound app to generate interest. All it shows is the “trade” of sending the coin and receiving the cUSDC (etc) contract, but doesn’t show the interest I generated in real time (which Cointracker advertised in one of the blogs). First off, my understanding is these aren’t taxable events for compound interest, so I’m thinking I should mark them as a transfer.

I also have some rebalancing contracts, and it doesn’t show any of the rebalances within my contracts, and I have no clue how to report these. These rebalances in the contract should generate a taxable event, just a guess.

I did add the wallet before I paid for the service with defi functionality, so maybe I need to just delete and re-add the wallet, but I’d rather not if there is an easier way to do it.

Thanks!

Thanks for reaching out @cwzens - we are hoping to launch full support for Compound before the end of tax season - we will follow up here when we do!

When it comes to DeFi, interest earned as payment should be a taxable event, as you are being paid by someone else for lending your assets.

Thank you for the reply, that is good to know.

What about other DeFi contracts? For example, I have some TokenSets contracts that automatically rebalance, and each rebalance should be a taxable event if crypto is sold or traded within it.

Also working on adding support for Set Protocol and we’ll let you know once we have an update there as well.

Hi @cwzens, Compound is now live.