How are y'all tracking DEFI transactions?

Has anyone figured this out?

I imported my SOL address for my Phantom wallet which I’ve used to play around a bit in DEFI with providing liquidity and staking LP tokens.

But the transactions within Cointracker don’t make a ton of sense. I’m hoping one of you wise folks reading this has managed to figure it out and willing to share.

I’m borderline considering not even including it in my taxes because it’s just so complicated. I’d rather report nothing at all then risk potentially having the IRS audit me because DEFI is weird. Everything is way less than I bought it for so it’s not like I had any gains. I just feel like I have to report every single transaction to them, ya know I’m trying to be good about it and pay my taxes.

What does something like this even mean?


There is no cost basis. and how the heck is LP token suppose to even have a cost basis?

or how about this one? All zeros? I’m just confused.

What about transactions where it’s minus the same amount and plus the identical amount within the same wallet? What the heck does that mean? and what does it mean when there are 3 transactions in one instance on Cointracker? whats it mean if 3 are on the right?, or if just 2 are on the left with 1 on the right, it certainly displays differently.
Screen Shot 2022-04-05 at 9.34.15 PM

I hope someone smarter than me can please shed some light on how to reconcile with the data Cointracker pulls from public address for DEFI transactions.

I have already read through this:
https://www.cointracker.io/blog/defi-yield-farming-crypto-tax-guide
So please Support if you are reading, please chime in with some useful info on how to actually track DEFI.

One last thing regarding that blog from Cointracker, it states that taking back your collateral and exiting a liquidity pool is not a taxable event. So what do we do in that circumstance with the transactions? How does it make sense within Cointracker?

Screen Shot 2022-04-05 at 9.37.18 PM
I am hesitant to submit these transactions as they appear natively on Cointracker when pulled from public address.

Someone please help make sense of this.

Thank you

2 Likes

I think I’m in a similar boat to you. I am very much still learning.
It would be interesting to look at the transactions on their respective explorer webpages and compare to what you are seeing in cointracker.
I tend to look at the transaction (using “View transaction”) in the blockchain explorer and look at the various lines of transfers that happened within that one transaction. I look to see where my transaction address appears and what it was being transacted with at the time.

Regarding your second image example, I do wonder if coin tracker has another entry at a similar time stamp that represents the other side of this transaction. I see this a lot where I have converted one coin into another, or across chains, or engaged with a liquidity pool. Or, perhaps you haven?'t imported something yet?

As I said, I’m new. Still learning. And having similar issues.