Add native support for Uniswap V2 LP tokens

[bluenotesrobot]

My proposal for you is to find a way to natively support Uniswap V2 LP tokens.

I have read your guidelines on LP tokens and the workaround does not work for me, which I will elaborate:

1. As part of a blockchain game I receive rewards directly in Uniswap LP tokens and I am talking about potentially hundreds of these transactions per month.
2. Once in a while I like to send my LP tokens from my hot wallet to my cold wallet.
3. Since the rise of cheaper layer 2, I see myself more often adding and removing from/to liquidity pools. Manually fixing every single one of them would be too time consuming.

So what could be a workaround?
Accointing could track value of Uniswap V2 L automatically!
Every Uniswapv2 LP token is a fork from Uniswap protocol and is thus standardised.
Reading the variables “token0” and “token1” and “totalSupply” from the smart contract of the LP token, one can easily calculate the value of any given LP token. Here is a guide on how to calculate it.

So instead users having to manually manipulate hundreds of transactions, Accointing could treat every LP token as they should be: tokens that hold actual value.

Finally I just would like to add that there are other projects that are capable of tracking value of LP tokens. To name a few:

1. DeBank
2. Zapper
3. Ape Board
4. Vfat tools
   I list these project just to prove that tracking LP tokens has been realised in several places BUT none of these are capable of keeping track the gains for taxing!

I checked other competitors of Accointing and found that none of these support properly tracking of LP tokens either! If accounting could do that, they would have massive additional advantages and I believe potential to attract many more users.

[Matt]

Thank you so much for the proposal in your feature request! I will share it with the appropriate people. Most likely it will need to be voted on. Hopefully, you’ll get enough upvotes from this community to have it implemented.

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Here is our take now:
Liquidity Pools: below is a link to a blog post about the topic, staking pools would be handled the same way as liquidity pools. How to Import Liquidity Pool Transactions to ACCOINTING.com - ACCOINTING.com The Hub - Cryptocurrency Portfolio Tracking & Tax Software

Some Staking Articles in The Hub: You searched for staking - ACCOINTING.com The Hub - Cryptocurrency Portfolio Tracking & Tax Software

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Also:

Hey guys! I understand your frustration with the staked and staking classifications so just to clear this out from our standpoint:

all tokens that were staked=do not classify
all tokens that came as a reward for staked tokens=staking

The reason why we don’t have more strict guidelines is because there aren’t any and they are subject to the interpretation of the different jurisdictions. That bein said, here is an article from Bloomberg providing further context on the matter:

Now, the lender could be considered to have converted their crypto for another crypto when they “stake” their money into the liquidity pool and received another token they can sell elsewhere. That is a taxable event, so in this example, just as dividends are taxable, so are tokens generated from staking activities.

However, it’s not as straight-forward as that because this transaction can also be viewed in another way; in that what the lender deposited in the liquidity pool is still their money and the tokens they receive in exchange is nothing more than a receipt. That means it is not a taxable event.

Meanwhile, on the borrower’s side, it can be argued that depositing collateral and receiving a loan in a different token form is akin to an exchange transaction, so a taxable event. Of course, usually taking a loan is not a taxable event. However, the transaction on a DeFi is unique. Unlike conventional loans, it includes depositing one currency as collateral to receive a loan in another.

If you need any tax assistance with your crypto taxes, make sure you visit ACTAN in the Hub where any of our crypto tax professionals can help you out.

[Matt]

Consider posting a link to this proposal to other similar topics to gather votes

[Perill]

Dear Matt,
really appreciate your software and support efforts. This topic is probably the single most important regarding tax in 2020 in terms of innovation brought to the ecosystem in this year. It has 14 votes already and is almost half a year old. Could you provide a timeline when this feature will be available and how to handle those transaction via the template in the meantime?
Kind regards

[Matt]

To see how many votes there are for a feature request simply go to the main page of the Accointing Community Board > Feature Requests > Then click ‘Votes’ to sort by most votes.

[Perill]

Dear @Matt
you closed the thread with the larger vote number. Will you add the lost 21 votes to this thread?
Thank you

[Matt]

The reason was that I felt that this post had a better explanation and better potential to rack up more votes than the other. But you are right, maybe I should have done it by most votes.
the 21 votes from the other link have all been notified to move their votes to this one.