DYDX Lending question

Hi CoinTracker Team,

Hope all is well. If I send some stable coins to DYDX to simply earn interest, it doesn’t seem that Cointracker is identifying this from the blockchain contract (Etherscan). Also, on DYDX, since this is only a simple deposit, it doesn’t show anything in transaction history (therefore, no CSV file to download). The only time when the earned interest will be recognized is at the time of withdrawal from DYDX when the funds come back to the personal wallet. I have four questions:

  1. Would CoinTracker recognize these transactions automatically at some point?

  2. What would be an appropriate way of entering this transaction manually? Would this be a transfer from my personal wallet to DYDX? Or should I show these funds “Send” to DYDX considering at the time of withdrawal, these funds will come back to the personal wallet (funds + earned interest)?

  3. It’s my understanding that from IRS perspective, earned interest in-kind is considered earned income? Would CoinTracker calculate this income for tax purposes? I understand that CoinTracker currently can generate IRS forms such as 8949 (gain/loss), but the earned income requires something like 1099-MISC. Should this be entered manually into software such as Turbo Tax?

  4. Is this correct? Earned income = (cryptos received from DYDX after earning interest - Crypto initially sent to DYDX) x $ value of the coin at the time of withdrawal

Thank you!

Hi,

I’m following on these questions. Appreciate an answer.

Thanks!

Hey @ML_DL_RL,

Unfortunately, there is no IRS guidance on DeFi derivatives, but we are tracking an issue to add support and we’ll let you know once we do.