I am refering to this article: Liquidity Pool Transactions - The Hub: Crypto and Bitcoin Tax Blog | ACCOINTING.com
and tax country Germany.
If you live in a jurisdiction that taxes your liquidity pool transactions as separate buy/sell events, like Germany, take notice. Your transactions are already being handled correctly by default. The only thing you would need to do is ignore the Liquidity Pool Token, and classify interest received as “Income” or “Liquidity Pool”. If you would like to learn more about these topics, you can read the associated sections below.
Does this mean that germans could just save all of the extra effort of creating a virtual wallet, with internal transactions?
Isn’t the balance change between the currencies in the LP pair a taxable event too?
Also Winheller seems to have a different opinion on some details of your article like, “same tokens” → Besteuerung von Liquidity Mining (DeFi)