Post
Topic
Board Service Announcements (Altcoins)
Re: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies
by
Nerome
on 20/01/2021, 02:22:54 UTC
@asdsvsd
This is described in this FAQ "How to import DEX trades like Uniswap, 0x, Kyber Network, SushiSwap" (https://cointracking.freshdesk.com/a/solutions/articles/29000036759?lang=en)


Thanks, looked at the guide but this doesn't actually cover the use case I mention, to be clear adding to the liquidity pool is NOT exactly like doing a trade/swap on a DEX like Uniswap, but perhaps you can clarify if this would capture liquidity pool additions regardless?

To explain further, on Uniswap you can submit two types of currency to the liquidity pool for that pair to get UNIV2 tokens representing that pair which can later be put back in the pool in exchange for a proportion of the pool's currencies, earning interest on each trade in that pair along the way. Since you don't 'lose' your underlying currency but do swap two currencies for one set of UNIV2 token it seems this use case isn't currently covered by cointracking.info at all. From what I can tell some competitors (namely Cointracker) seem to track this already

More info: https://uniswap.org/docs/v2/core-concepts/pools/

Uniswap and DeFi (along with this concept of adding to liquidity pools since DeFi doesn't rely on centralized third parties and as such needs a way to act as market maker, which liquidity pools do) will only get larger as time goes on so I think it's def worthwhile to add functionality for this into cointracking.info directly.

Just created an account to comment about Uniswap LP tokens as well.
They way it ends up working is you have X coin A and Y coin B, and on uniswap you exchange both for some calculated number of Uniswap V2 LP tokens.
In order to model this correctly in Cointracking, I think what would be necessary would be:
A type of transaction (correct me if I'm wrong and this is already possible) that lets you "sell" X coin A and Y coin B for Uniswap V2 A-B LP tokens, with a manually set cost basis of the combined X+Y at the time of the providing.
Then later on, you would be considered "selling" the A-B LP token  for X+/-some% coin A and Y+/-some% coin B with respective cost basis of each coin as per the market.

No idea the best way to represent this on cointracking.