This article refers to the old Import method. We recommend reading our current article Import of Liquidity Pool/Mining transactions.
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TL;DR: Adding liquidity pool (LP) transactions manually is needed when using the legacy import method. You'll need to create trades at the beginning and end of the pool lifecycle. Use "bonus" or "income" entries for rewards, and optionally mark LP entries as taxable or non-taxable based on your local tax rules.
General Instructions
When participating in a liquidity pool:
Add two trades when starting the pool (e.g., trading ETH and BTC for LP tokens)
Add two trades when ending the pool (e.g., trading LP tokens back to ETH and BTC)
The LP token amount should be split equally across both base assets. For example:
0.1 ETH → 50 LP tokens
0.01 BTC → 50 LP tokens
Ending the pool: 100 LP tokens → respective ETH + BTC
Tip: You don't need to log every volatility change that occurs while funds are in the pool.
Bonus Rewards
If you receive extra tokens (e.g., rewards), log them as:
Bonus or another income transaction
Use a custom price if the asset isn’t listed on CoinTracking’s sources
Check the Coin Trend page to see if a token is listed
Alternative: Deposit/Withdrawal Format
Depending on your country’s tax rules, you can log the pool’s start and end as:
Deposit and Withdrawal transactions
These are currently the default way LP entries are imported
Import Options
CoinTracking now supports automatic LP transaction import from:
Ethereum via ETH wallet address (supports DEXes like Uniswap, Kyber, SushiSwap)
Binance Smart Chain via BSC wallet address
For other blockchains (e.g., AVAX, LUNA, MATIC, TRX), support is expanding. LP transactions from these chains are imported as either:
(A) Taxable Events:
Start: "Other Expense" (taxable) + "Income (non-taxable)" for LP token
End: "Income (non-taxable)" for returns + "Other Expense" for LP token given back
(B) Non-Taxable Events:
Start: "Expense (non-taxable)" + "Income (non-taxable)"
End: "Income (non-taxable)" + "Expense (non-taxable)"
Rewards are logged as "Income" and appear in the Income section of the tax report.
Tracking Impermanent Loss
CoinTracking does not automatically track impermanent loss. You can manually log:
Losses: use "Other Fee" or "Spend"
Gains: use "Income"
Log these entries in fiat currency to avoid affecting your coin balances.
Important Notes
Manually assign asset values if blockchain importers don’t auto-calculate them
LP tokens use a format like "LP-XYZ123"
Tax implications vary by country — always consult your tax advisor
For further guidance:
How to Import DEX Trades
How to Enter ICO Coins
Disclaimer: Please note that we are not tax advisors and are therefore not permitted to provide tax advice. The information contained here is for general information and technical support in using the CoinTracking software only. It does not constitute tax or legal advice. Please contact a qualified tax advisor with any tax questions