In the DeFi & Yield Farming Crypto Tax Guide by CoinTracker, it outlines a strategy to indicate entering into a liquidity pool as a deposit, and exiting as a withdrawal. Additional asset volume gained is counted as income resulting from swap fees earned and/or liquidity mining rewards.
Implementation - Deposit/Withdrawal Of Assets
  1. Add the ability to edit transactions in/out of liquidity pools as Transfers.
  2. Edit transactions where the asset deposited into a liquidity pool loses value (when the total value withdrawn is less than the value deposited). This is relevant in cases where a single asset is deposited/withdrawn, e.g. 1 WETH is deposited into a liquidity pool with multiple underlying assets. The assets trade at a loss in total value. 0.5 WETH is withdrawn in addition to any separate liquidity mining rewards claimed.