Let’s say I borrowed stable coin on Celsius/Nexo/BlockFi. The way I did it is that, I marked the transaction as ignored so it the collateral doesn’t leave my wallet thus not incur a taxable event. But not sure how to classify the stablecoin (DAI/USDC/USDT) I received if it’s “add funds” or “liquidity pool”.
Another example is in DeFi’s (like Solend, Aave, Geist, etc.) where I deposit assets like SOL. Borrowed stablecoin on it, this time, I marked the deposit as internal (created another wallet and received the collateral there). Then I borrowed assets, not sure how to classify if “add funds” or “liquidity pool”. When I repay, I classify it as “payment”, not sure if it’s the right classification.